I’m quite new to forex trading, but I have traded stocks for a long time.
I want to trade some of the major FX-pairs intraday. Like when I trade stocks I want to look at the orderflow/orderdepth and the volume in the market. I know that the FX-market isn’t traded at an exchange (OTC). And I’ve been told that it means that the order is sent to the broker who’s getting several different prices from multiple banks. Then the customer is allowed to trade at the best of these prices.
Am I correct so far?
This means that the orders I can see in my trader is ONLY the orders created by MY SPECFIFC brookers customers. How reliable is this for short-term trading? This must depend on how many brookers there are out there? How is the total volume of the market spread among those brokers?
Is there any other way to get a clue about the orders put on the market and the volume going through it?
I’ve heard that you can trade FX intraday without having any information about the voulme in the market. What do you think?
Someone told me to use the orderdepth/orderflow of the most liquid futures contract of the specific FX-pair. Those are traded at CME Chicago, right? What do you think about that? Then you get at least the complete picture of the futures contract because it is traded at an exchange, but how reliable is this for trading the underlying FX-pair?
Grateful for answer!