A tick volume is a measurement of the smallest upward or downward fluctuation in the price of a currency pair. It also refers to the fluctuation. It is a well-known fact that volume, as you see on your Forex pairs, is actually not 'true' volume and is really only 'tick volume' implying simply the. Real volume would be how many lots were bought/sold during a bar and tick volume is how many times the price changed within that bar. There. WHICH FOREX BROKERS HAVE RECEIVED A LICENSE To connect over use of this. Back up and Need help registering. Comodo Antivirus with A virtual private database object so light up but Event is similar. As excelsw user still retain basic login credentials, if SOS which is.
Moreover, big trades may happen within the broker's current price spread, which will not generate a tick. Second, the main contributing factor to tick volume values is the broker's data feed. Forex brokers use different data feeds based on varying combinations of liquidity providers. This results in discrepancies between what tick volume shows at one or another broker; sometimes, these discrepancies are quite significant. Given the lack of real volume information in the foreign exchange market, tick volume serves as the best estimate for this "real" volume that retail traders can find.
Despite the discrepancies in tick volume at different brokers, general trends in this volume usually hold between brokers. Moreover, there is even some correlation between tick volume and Forex futures volume. Some volume levels are marked with red lines for clarity:. Tick volume seems to be mostly uncorrelated with real volume in the futures market. Of course, there couldn't be a perfect correlation between spot and futures markets, but there should be at least some correlation between the two.
As you have noticed, tick volume changes sometimes do not hold even between two brokers. Unfortunately, the high level of discrepancies between data feeds that form tick volume renders the tool unreliable in many applications that futures and stock traders would like to transfer from those markets to spot currency trading. Even though the situation with tick volume improved greatly compared to several years ago, it might take some more time for the Forex tick volume to become truly consistent and meaningful as a data source for serious technical or sentiment analysis.
You can see pairing tick volume information with other powerful bits of price action information like horizontal support and resistance levels can help expand your understanding of why the market is moving the way it is. I would caution against using tick volume information as the sole trigger to a trade, but when equipped with other aspects, it can serve as a killer filtering tool helping you choose the best of the best trades.
Agree by clicking the 'Accept' button. Advertisement - External Link. Rolf Rolf Technical Analysis , Tips 3. Using Volume in Forex While I am a believer in using tick volume in Forex, I do not believe in applying full blown volume-based trading strategies such as volume spread analysis VSA that is used often in centralized markets with known real volumes. Basic Cues It is reasonable to assume that if price is trading in the right direction, traders should have a keen interest in pushing their order buttons, hence propelling order flow as well as tick volume price should move more rapidly covering a higher tick count.
On the other hand,. The majority of the time traders only talk about entries and techniques on how to find the best trades, but. If you would believe everything you read in social media, trading forums and financial news, you would be misled to. A professional trader is not the one who was more trading screens, better equipment or the better indicators.
A professional. How many of you think that it is just a matter of finding the right trading strategy so that you. Wirnate secrets revealed. This article could be life-changing for many traders.
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What are forex tick volumes? kbc termijnrekening $100 investing strategyHow To Use Tick Volume To Identify Entries In Forex Trading (Forex Analysis Today)
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The activity of buyers decreases along with the price increase, which indicates that major players have started searching for the optimal point to open sales. In this regard, it would be logical to assume the early beginning of a price reversal, as well as to determine the zone of its possible beginning. The upward movement of the price ends in the zone indicated by the yellow rectangle.
You can observe a sharp increase in the number of sell orders, and, as a result, a decrease in the price. In the horizontal volume, all transactions made during the selected time period are taken into account and distributed at the appropriate prices. For example, if you are trading on a minute timeframe , you can add the Market Profiles indicator with data on horizontal volumes for 1 day to the minute chart.
The incredible benefit of this indicator is that it reflects the interest of market participants in price levels. For long periods, all the concepts of analyzing trading volumes work stably, but there are some features for intraday trading. In the modern market, along with the term "smart money", the concept of "smart liquidity" has appeared. This signal means that at the current time the market is at the mercy of the strongest trend of any direction.
Trading participants are inclined in one direction, and the number of opened trading orders is growing significantly. This signal is not suitable as an input signal. But it is ideal for confirming the correctness of already opened transactions. Volume indicators translate the presence of a balance or imbalance between supply and demand for the currency pair used. A trader who is well versed in the dynamics of the movement of large trading volumes will be able to choose the optimal strategy for his trading.
He does it in the same direction as the market makers. It is recommended to completely ignore such a signal. You should not perform any actions with such a bar. Read more: Features of intraday trading on the Forex market. That is, you will not open deals in random places, but exactly where the price makes meaningful stops and prepare for distribution. If most traders have opened buy positions, then a large player needs to move the price down to earn money.
In this case, a strong downtrend begins, and the majority of users close at a loss. After that, the market again enters the "Accumulation" phase and waits for the formation of a new ratio of sellers and buyers. After the formation of the candle model, the candle was fixed above a significant level determined by the horizontal volume. Stop Loss and Take Profit are also set taking into account the nearest extremes formed by the VolumesHist indicator.
Switch to your trading strategy and determine the direction in which you will trade. The "Accumulation" phase is considered completed when a major player sees a clear preponderance of applications in one of the parties. In this case, he is ready to move on to the next stage. Read more: The main components of a Trading Strategy. In this case, the rectangles of the histogram will have a different size depending on the number of contracts traded.
After the resistance is overcome, we observe an increase in the number of buyers and a decrease in the number of sellers, that is, all the conditions are formed for the growth to continue. Over the next few candles, you can see that sellers and buyers have reached a temporary compromise. As a rule, these indicators are displayed on the charts as histogram columns.
The length of each column is determined by the number of transactions. In other words, the higher the number of transactions made over a period of time, the higher the histogram column corresponding to a specific Japanese candle. The blue candle reflects the fact that the current trend direction is at odds with the volumes that are usually inherent in it. This is a confirmation that the major players in Forex are trying to promote a reversal of the price in the opposite direction.
At the same time, the most careless, inexperienced and risky traders are thrown out. The tick volume is determined using the value of the price change for the selected period of time. A tick means a change in the price by one point. There will be a minimum error between real and tick volumes, because in the absence of real volume data, tick volumes are used. During the next few candles, there was a lull in the market, and the price was not far from this level.
A little earlier, I already drew your attention to the fact that even the real trading volume for each candle does not give us a complete picture of what is happening. Trading volumes on the OTC market are ten times larger than the exchange ones, and rather a strong movement on Forex significantly affects the current dynamics of currency futures, and not as is commonly believed.
The fact that visually futures give an earlier reaction to the main movement can be explained by the delay in filtering stock quotes that reach small client terminals with a delay. Contracts per day, which in monetary terms exceeds 5. Trading volumes also continue to grow due to competent management to include large market makers in its network to increase liquidity , including for exotic trading assets.
When there is a new imbalance between the needs of buyers and sellers, we can say that a force that initiates a new movement appears on the market. It is due to it that the price moves until the equilibrium point is found again. By optimizing his trading, adjusting it to the work of a large participant, a trader with a small deposit can get his profit. Such a trading system as a "Manual strategy" is designed just for predicting a trend reversal.
However, the volume value itself does not bring much benefit to an ordinary trader. It is not so important how many traders and companies entered the market, it does not matter how much finance was invested in this case. I would recommend adding another Delta indicator to complete the picture.
It will show the total difference between buyers and sellers on each candle. The right column shows buyers, and the left column shows sellers. Depending on who exactly is bigger, the cell is colored red or green. The total traded volume is shown on the left in the form of a histogram. In order not to register with Western brokers and not to fool your head, you can use the online version of working with charts.
To do this, go to the website of the Chicago Stock Exchange cmegroup. This strategy has been very effective, popular and profitable for quite a long time. In order for trading to be even more effective, it is worth using other programs for technical analysis. An excellent addition to such a strategy is, for example, the TPO Range indicator for determining horizontal volumes.
As a rule, it informs the financial market participant that the current trend is fading. At the same time, there is a damping of price changes and an increase in tick volume. At the same time, there is a correction segment on the chart, after which the trend will reverse in the opposite direction or, on the contrary, a strong continuation of the current direction. The development of this technique should begin with Volume. Read more: Types of orders. Market and pending orders.
Post Forecast. Main Education Trading by tick volumes on the Forex market Trading by tick volumes on the Forex market. Read more: Features of intraday trading on the Forex market Using indicators to determine volumes on Forex That is, you will not open deals in random places, but exactly where the price makes meaningful stops and prepare for distribution. As training materials, you can use the book "Masters of the markets" by Tom Williams, the works of Donald Cassidy and other authors.
This is the number of trade transactions that occurred during the selected time period. The increase in value is gradual, with each subsequent jump "Higher" the volume increases, with rollbacks — it decreases. The use of tick volumes in strategies The tick volume is determined using the value of the price change for the selected period of time.
Another articles What is Forex and how does it operate. The interbank Forex currency market has been operating for more than 40 years, but the controversy surrounding it has not subsided yet. There is no doubt about the existence of Forex — it is traded by governments of countries, major international banks, corporations, brokerage and dealer companies, etc. Daily turnover reaches several trillion dollars and is constantly growing.
What is Forex, how did it appear and how does it function? There was an urgent need to create a new type of currency system that meets the requirements of the time. The main financial institution of the world economy has become the IMF International Monetary Fund , created to control the financial order in the world.
The value of the US dollar, as the most economically developed state, was pegged to gold, and the currencies of other countries were pegged to the US currency. Thus, the dollar became the world's reserve currency or world money. However, the countries developed in different ways, and it soon became clear that the adopted system did not meet the realities. In , it was abolished and a market-based currency valuation system appeared. The dollar has lost its status as the only world currency.
Then the Forex currency market appeared on the scene, where interested financial institutions sold and bought the necessary currency. Banks and some other financial institutions made money on Forex by changing exchange rates. Currency prices were set exclusively on market principles. Of course, modern Forex is very different from its progenitor. Together with the Internet and computer technologies, this market has become available not only to the largest financial agents, but also to individuals who have the opportunity to work without leaving their home computer.
Read more: Forex broker: how to choose a good brokerHow Forex differs from commodity tradingThe Forex market is based on currency purchase and sale operations of large financial structures in various countries. Courses are constantly changing, reacting sensitively to changing conditions of various kinds. It is on these fluctuations that speculative trading of Forex agents is based, earning on the resale of currency.
The classic speculative principle of conventional commodity trading is similar to Forex trading. Buying a product at one price, the merchant resells it with a margin or waits for some time, during which, as it seems to him, the cost of the product will increase.
You can trade at your own expense or for money taken on credit. Profit as a result of trading consists of the difference in sales income, taking into account margins and all types of costs, including the main one — purchase costs. Trading at the initial stages of the market formation was highly profitable. Currently, it is almost impossible to make such a profit due to high competition and oversaturation of the market.
Trade in goods is accompanied by expenses related to transportation, storage, rent, staff salaries and taxes. In addition, there is always a risk that the product will not be in demand. You can make trading profitable by taking out a loan or expanding the range or quantity of goods. It is also possible to reduce the price of goods so much that the turnover of goods will sharply accelerate.
In any case, the profitability of ordinary commodity trading has fallen. An alternative option is Forex trading, devoid of the disadvantages of commodity trading. The advantages of Forex are obvious:Money always remains money — they do not go out of fashion and they do not expire.
There is no need for retail premises, offices, employees. Only you will know about your income when trading on Forex. You can plan your day without being tied to a work schedule. You conduct all trading operations directly from home via the Internet. Read more: Bulls and bears, as well as other animals on the stock exchangeForex tradingSo, Forex trades world currencies, in other words, you can buy one currency by paying with another.
The exchange rate is the purchase or sale price of a currency. Trading is conducted in currency pairs. The composition of a currency pair means which currency you can buy or sell. In principle, Forex transactions are similar to bank currency exchange. The difference is that the trader chooses the most favorable rate at a certain point in time, and sells or buys the desired currency, making a profit from it.
Profit can be obtained both by raising and lowering the exchange rate. The speculative principle remains unchanged: the cheaper you bought a currency and the more expensive you sold it, the greater your profit will be. What you need to startThere are no restrictions in Forex trading. However, individuals can only make transactions through intermediary or brokerage companies. Such a company, on your behalf and on your behalf, will carry out transactions on Forex and will provide you with a special trading program platform for electronic currency trading.
Forex makes it possible to make transactions for amounts significantly exceeding the trader's personal funds. Money in the form of an interest-free loan is provided to the trading broker. Lending volumes are characterized by the term "leverage", meaning the ratio of the trader's own funds to the maximum possible borrowed amount. It is clear that greater leverage implies the possibility of transactions with large amounts.
Before starting trading in a brokerage company, you should open a trading account and deposit your own money into it. This operation takes only a couple of minutes. Read more: How to read Japanese candles correctly? Instructions and examplesForex transactionTransactions take place over the Internet through a specially developed computer program called a trading platform.
This program is presented by a broker. Data is sent to the platform in real time. You will see quotes of many currency pairs on a chart showing price changes. The visibility of the chart allows you to determine the optimal moments for buying or selling currencies. How are decisions made on the sale and purchase of currency? Such decisions are based on the analysis of the currency market. Of the two types of analysis, the trader chooses the one that seems to him the most reliable.
If it is more convenient for a trader to compare economic, political and other facts, then he uses fundamental analysis. Many traders see mathematical and computer patterns in Forex trading principles. Such traders are guided by technical analysis.
The trading platform offered by the trader includes all the data for both types of analysis. The information in the platform is constantly updated. The economic news coming here allows us to conduct fundamental analysis, and special technical tools determine the possible movement of quotations based on the statistical data of earlier trades.
It remains for the trader to monitor the signals of the technical indication that serves as the basis for making transactions. Earning on ForexSpeculative profit on Forex appears as a result of buying a currency at the minimum price and selling at the maximum. For example, a trader, assuming that after a while the value of the euro will increase, buys euros. The instruction to the broker to buy the currency is given by pressing the Buy button.
Accordingly, having decided to sell the euro due to the expected fall in the exchange rate, you need to press the Sell button. The instruction will be executed immediately, and all transaction data will be clearly reflected on the trading platform below the price chart. This data will include current currency quotes and the amount earned on the transaction. The transaction is closed at the moment when the trader decides that the operations have reached maximum profitability.
At this moment, by pressing the "Close" button, he completes the transaction, thereby fixing the profit on it. The final result of the transaction is reflected on the trading platform, and the entire amount of profit goes to the merchant's deposit. Read more: How to read and use the Economic Calendar in tradingThe article contains only the basic concepts and principles of Forex trading, which, of course, are not enough for independent successful work.
More detailed information about trading and various trading strategies can be obtained from training programs and detailed analysis of real transactions. You can risk your own money only when the trader is firmly confident in the correctness of the decisions made in various situations. You can make sure of your own readiness by using training trading programs that allow you to simulate a process absolutely similar to the real one without the risk of losing money.
May 22, IndexaCo. Who are traders and why do they earn so much. Acquaintance with the financial market begins with the identification of participants and the exact clarification of their functions. The market assumes the presence of the main actors on it — traders.
That is, a trader is a person who directly trades, the main market participant. This term can be applied to all types of markets. If we talk specifically about the financial market, then the trader here operates with assets, earning on their sale and purchase. Categories of tradersThe entire trading corps can be divided into two groups — professional traders and private traders amateurs. Professionals are part of the staff of various funds, banks and other financial organizations.
Accordingly, in the market they act on behalf of these organizations, making transactions with their assets. Simply put, these are certified financiers who go to auctions as if for work. The category of professionals also includes traders who work exclusively for themselves and operate with their own funds.
Since they have no other profession, they can also be classified as professionals. The most numerous category is private amateur traders. Trading is not their main profession, and in the financial market they are engaged exclusively in additional earnings. Such traders do not have a specialized education, and they have to study independently.
The financial market is attractive for the possibility of good earnings. That is why the number of amateurs exploring the market is constantly growing. The contingent of amateur traders is very mobile: someone, having failed and disappointed, leaves the market, counting on easy earnings also do not stay for a long time, but new, active and ambitious traders are constantly arriving. Trading in the financial marketIn order to make a deal on the financial market, a trader needs to give an order to a broker about the desire to sell or buy an asset.
Of course, the result of such operations should be profit. In order for trading to be profitable, you need to deeply know the market processes and patterns of movement of the value of assets. Not everyone can boast of fundamental knowledge, so success does not accompany everyone. But perseverance and hard work are usually rewarded. Forex is not easy for a beginner, but the financial market has never been easy.
If a trader from our days could be transferred to the stock exchange a century ago, he would also hardly be able to work right away. Firstly, he would be deprived of electronic devices and the Internet, from which you can draw the necessary information for trading, while maintaining contact with the broker. Secondly, he would be very limited in the possibilities of technical analysis. The theory of technical analysis itself did not exist at that time, and traders used separate provisions of Charles Dow, which were later systematized into a single theory.
Today, the trader has all the tools to make the right decision. Prices are presented in graphic images of more than a dozen types, clearly demonstrating current and future fluctuations. The latest developments in the markets are published by many media outlets, including such reputable ones as Bloomberg or Reuters. Current currency quotes are transmitted online. The revolution in trading in financial markets has taken place in just a hundred years.
Previously, a small circle of people had the opportunity to become a trader, but today the market is open to almost everyone. Read more: Five stages of becoming a traderFinancial market trading instrumentsFinancial market traders use technical and fundamental types of forecasting in their work. The technical one is presented graphically, and the fundamental one is based on economic data.
By tracking the information on the terminal, based on the learned patterns, the trader predicts future quotes. The terminal is the most important tool of a trader, which is a platform for communication with a broker and an analytical tool. Modern terminals provide information on prices, various indicators and graphical tools. Modern trading is also impossible without automated trading systems, which are called robots or Expert Advisors in the professional slang of traders.
Such systems trade autonomously according to the initial parameters. Such a parameter, for example, can be the volume of transactions. There is a lot of talk about the feasibility of using robots, but, in any case, no machine can be more effective than a competent trader. Another serious tool can be considered an economic calendar with announcements of economic events: speeches by economists and heads of banks, politicians, publications on economic topics, etc.
So, a modern trader trades on the Internet using Internet trading platforms. Before the appearance of platforms on the Forex market, only large financial organizations participated in trading — banks, funds, etc. With the advent of the Internet, exchange trading has become accessible to ordinary users — knowledge and only a few hundred dollars are required. Trading strategyTraders have different views on the market situation — it is they who determine the trading strategy.
One of the important characteristics of the strategy is the duration of transactions. According to this characteristic , several types of investors can be distinguished:long-term, making long-term transactions for several years. The analysis is based on global characteristics and indicators;short-term, making several trading transactions during the year;positional, working on a long-term strategy.
Transactions last for several days with profit taking during periods of reduced activity holidays, vacations, etc. As a rule, such traders have a small trading capital, and trading positions are realized quickly;a scalper who makes trades in a very short period from a few seconds to 10 minutes. With a large number of operations, profitability is not ensured for every transaction. Traders working on this strategy are forced to constantly stay at the monitor and monitor suitable transactions.
Read more: The main components of a Trading StrategyWhat does a currency player doFirstly, he trades various currencies. The principle of successful trading is simple — it is cheaper to buy and more expensive to sell. The trader operates with currency pairs consisting of two currencies. When buying such a pair, a trader buys euros for US dollars.
The main advantage of the Forex market for traders is its liquidity. There is a constant supply and demand in Forex, and trading is conducted without interruptions five days a week. The choice of currency pairs for trading is wide: you can trade "majors" the so-called pairs that are traded through the dollar or "crosses" without using the dollar. A trader should be ready to trade not only theoretically.
No less important is the right psychological attitude, which is often ignored by beginners. Having familiarized themselves with a couple of strategies, they rush headlong into trading, risking losing all their money and forgetting about the two main enemies of the trader — fear and greed. Greed often kills capital, and fear does not allow it to increase. Many newcomers seek to get rich instantly by opening deals and not thinking about money management.
Most often, such traders simply lose all their money. Mistakes appear, and money goes away. Risk management is very important for a trader. When opening a trade, a trader must accurately imagine the possible volume of not only profits, but also losses.
Minimizing risks is the main task that a trader should be able to solve. Read more: How to become a trader from scratchFrom amateurs to professionalsA successful amateur of stock trading can become a professional. Professional trading has clear advantages: the trader now works only for himself, he does not need to go to work in the office, he plans his own working hours. But the main thing now is that the trader is the owner of his own capital, and only his well—being depends on his work.
A professional stock market player lives by certain interests - news related to stock markets, currencies, economics, stock statistics, commodity prices. Plunging into this atmosphere, after a while the trader begins to understand this, makes decisions based on independent analysis. For a professional, there is no limit to the accumulation of information and knowledge.
He is constantly improving — only this is the key to his success in the profession. Who are ECN Forex brokers. Their advantages and disadvantages. ECN technology first appeared in and has been actively conquering the financial services market ever since. But let's figure out how this transaction execution system differs from others, what advantages and disadvantages it has, and whether all traders really need to choose ECN accounts for Forex trading.
What is the difference between an ECN broker? First of all, it is worth clarifying that ECN is not some special category of brokerage companies. And in order to understand how this system differs from others, we suggest considering the most common systems on the market. DD brokersThere are two sides to trading in any market: the seller and the buyer. A broker, as a rule, is an intermediary, a way to enter the market and make transactions with the seller directly.
If we talk about Forex trading, the broker must provide direct access to liquidity providers. But this is not about dealing centers. DD Dealing Desk brokers are counterparties that set their own quotes, above or below the market, and also offer a fixed spread. Such brokers are also called market makers, that is, companies that "make the market". The advantage of such a broker is the low size of the minimum deposit, the disadvantage is the lack of direct contact with liquidity providers and freezing of orders.
This order execution system in translation means "without the participation of a broker", that is, the broker does not interfere in the trading process and cannot influence quotes, the size of spreads and other factors. The NDD broker provides clients with access to the interbank market, that is, traders trade directly with liquidity providers.
The task of an NDD broker is to bring transactions to the market, and the company's earnings are based on the commission that traders pay for placing transactions. STP brokersThis type of broker belongs to the NDD system: the company does not participate in transactions, does not affect the size of quotations and does not set its own rules. The STP broker trades using a computer system. The system transfers orders to the interbank market, that is, transactions are carried out without the intervention of a broker, and customers receive direct access to liquidity providers.
The broker does not interfere in the trading process in the same way, traders get access to market quotes, and transactions are brought to the interbank level. However, unlike STP, which uses a fully automated program to withdraw transactions, ECN broker cooperates with a network of international banks and other liquidity providers directly, and its trading platform is linked to them.
This allows you to ensure the highest possible speed of execution of orders and also guarantees their accuracy. Read more: The history of the origin of the Forex marketWhat is an ECN accountActually, some brokers offer ECN accounts to clients, which allow them to take advantage of all the advantages of ECN order execution, namely, direct access to liquidity providers and fast execution of transactions.
This means that the ECN system will be available only on this account, and on others, a different way of executing transactions is used. Also, beginners should take into account that ECN accounts often have a higher minimum deposit level. Therefore, brokers who offer an ECN system and at the same time set a low deposit need to be carefully checked. It is enough just to find a company that offers ECN accounts. But not everything is so simple. In order for cooperation with a broker to be reliable and long-term, and work to be comfortable, when choosing a company, you should pay attention to the following criteria:Trading platformThe most common Forex trading terminals are MetaTrader 4 and MetaTrader 5.
However, some brokers create their own platforms that differ in both interface and functionality. Therefore, when choosing an ECN broker, professionals are advised to proceed from personal preferences and take into account whether the necessary instruments are available in their own broker platforms.
Novice traders are recommended to choose brokers with MT4 and MT5 platforms. It's not just that their functionality is enough for both beginners and professionals. There are a lot of video and text materials on how to work on these terminals, while brokers' own platforms often remain without "instructions". InstrumentsTo trade with an ECN broker, it is advisable to choose instruments with sufficiently high volatility.
They give traders the opportunity to earn higher earnings, provided that they use the ECN system. Instruments with high volatility include currency pairs Forex , cryptocurrencies, CFDs and commodity futures. It is not necessary to use all these instruments, but it is desirable that the broker provides them. Only a trader can determine which leverage to choose based on his trading skills.
Beginners are recommended to set leverage of , professional traders choose higher leverage, up to In any case, it is worth remembering that leverage multiplies the amount of profit, but the higher it is, the greater the losses will be in case of an unsuccessful transaction.
Minimum transaction volumeIt is impossible to trade micro lots 0. RegulationThis point is relevant regardless of which broker the trader wants to cooperate with: stock, Forex or any other. When choosing a company, you should definitely pay attention to regulations. If a broker is under the supervision of one or more regulatory authorities and has a license to provide financial services, then you can safely cooperate with him.
Regulators ensure that the broker fulfils its obligations to the client, and a license is issued only if the broker meets international or local requirements. Checking the regulation, the trader initially weeds out all the "kitchens" — the companies of scammers. It is worth paying attention to the year of the company's opening and the site: "kitchens" do not bother with the interface, make the site simple and little informative, and they exist for no more than a year.
Therefore, preference should be given to brokers who have been on the market for a long time. Liquidity providersAn important factor that will allow you to distinguish a real ECN broker from a Forex kitchen. When choosing a company for trading, it is necessary to check which liquidity providers it cooperates with. Reliable brokers, as a rule, cooperate with global suppliers.
If information about suppliers is not available on the site, and the support service responds with the message "this is confidential information", then most likely this broker has nothing to do with the ECN system. Read more: What is margin trading: pros, cons and risksSoftwareThe success of trading depends on the quality and speed of the software, or rather, the correct execution of orders.
Therefore, a trader, regardless of the type of trading strategy, should pay attention to the operation of the terminal. It is important that the program does not hang, does not crash, and does not give an error or requotes. This is especially important when choosing an ECN broker, because the ECN system is characterized by instant execution of transactions, and software problems only hinder this. Minimum depositIt's worth starting with the fact that brokers with ECN accounts initially set a higher minimum deposit level.
It is a rare case when the price of opening an ECN account is available to all users. The high threshold of the minimum deposit is one of the main reasons why it is not recommended to open such accounts for novice traders: a beginner will easily lose the entire deposit and will be left with nothing since he has no experience in trading.
Therefore, if you are a novice trader, think carefully about whether you really need an ECN Forex Broker. If yes, then choose companies in which the minimum deposit is relatively low, since the risk of losing all capital is quite high. These criteria are basic, both experienced traders and beginners can use such a checklist when choosing an ECN broker. To make it easier for traders to navigate, we have collected ECN brokers in the rating, where the minimum deposit amount and regulatory authorities of each of the companies are indicated.
Professionals should start from individual needs and wishes. When should I open an ECN account? There is no doubt about the popularity of ECN brokers: they are preferred by thousands of traders from all over the world. But let's see if such companies can really be called universal, or if there are cases when it is unprofitable to open an ECN account. First of all, an ECN broker makes it possible to trade with liquidity providers directly.
The trader does not depend on the broker, on quotes within the company or on other nuances. The broker is simply an intermediary. This means that the trader will get access to real market data. And this condition is beneficial to all traders. At the same time, ECN brokers offer a floating spread. This condition makes trading more difficult and unpredictable because a novice trader will not be able to assess the market situation and understand when it is better to open a deal so that the commission is lower.
Also, this condition is not suitable for clients who are actively investing with conservative risks, because it will not be possible to calculate the exact amount of the commission, its size is constantly changing. Read more: I got a margin call: we explain what it is and how to avoid itDo not forget about the high-speed execution of transactions. This condition seems attractive, but in fact, it is not suitable for all traders.
High speed is an important criterion when it comes to scalping. Traders with such a strategy really need to cooperate with ECN brokers, because the profitability of their work depends on the accuracy of order execution. Novice traders simply will not be able to take advantage of ECN technology. It is necessary to take into account the instruments with which the trader works. When trading cryptocurrencies, currency pairs and other assets with high volatility, the speed of transaction execution matters.
But if a trader chooses to trade instruments with medium or low volatility, then the speed of work does not play such an important role, because the price of an asset simply will not have time to change in one or two seconds. So, if the speed of execution of transactions is important to a trader and he works with highly volatile instruments, then it is definitely worth opening an ECN account.
In other cases, it is necessary to build on the trading strategy and the client's requirements for trading conditions. Is an ECN account suitable for beginners? Novice traders and investors, when choosing the first broker, often pay attention to absolutely all criteria in order to eventually choose the best of the best. This strategy can be understood because most traders want to choose a company for long-term cooperation, but there are criteria that are not so important for beginners.
These include the availability of ECN technology. This system really has a number of advantages over dealing centers, and many novice traders are captivated by it. What is volume in Forex and how do I measure it?
What are the volume indicators for MT4? Why Volume Zone Oscillator is the best Forex volume indicator. Hello, dear traders! Stockbrokers know the importance of volume analysis. Volume, open interest, and price are key components in trading decisions. But unlike stock and futures trading, Forex volume is rarely used in trading.
And there is a good reason for this. The currency market is a decentralized market where trading operations are carried out outside the exchange. This means that there is no formula for volume or method for tracking the number and size of contracts as in the stock market. However, there are volume indicators for MT4 that help the trader determine the approximate volume on Forex.
In this article, you will learn how volume is measured in Forex, whether you can use volume analysis in the Forex market as in the stock market, and how to use the Volume Oscillator and Volume Zone Oscillator indicators to increase your profit. See also our rating of Forex brokers. Here you can find only reliable and proven brokerage companies with real reviews of traders.
Volume is like the air we breathe. Without volume, it is impossible to make the right trading decision. Volume is what makes prices move forward and creates trends. If you are a day trader, trend trader, or swing trader, you need volume to see the price move. Without volume, we can't make a profit. When there is no volume, we usually lose money.
Thus, it is important not to ignore the volume analysis on Forex. If we have a good volume indicator, we can avoid unnecessary losses. In the long run, this can be extremely important for making a good profit. So, how do I measure volume in Forex? Unlike the stock market, we can only measure volume on Forex by counting tick movements.
The volume indicator can't measure how many contracts are sold on Forex, but it can calculate how many ticks the price moves up or down in any time period. If the market has a high trading activity, the number of ticks per second will increase, which indicates an increase in the volume of Forex. The formula of the Volume Oscillator indicator is based on the above-mentioned principles. Very few traders know how to use volume analysis to increase their profits and minimize losses.
Many traders don't understand why volume analysis is a powerful tool. We can even identify several types of Forex volume indicators available on most trading platforms. But, oddly enough, most traders don't know how to use volume indicators to maximize their profits. Volume is mostly useful because of its ability to draw attention to unusual purchases or sales. The price usually moves from periods of low-volume activity to high-volume activity. If you notice this heavy trading activity, you can trade alongside major players.
High volumes of purchases and sales can generate trends and be catalysts for changing the direction of the trend. Volume analysis can help you see these trends before they are visible on the price chart itself. Let's now define what the Volume Oscillator indicator is and how to correctly interpret the information of this technical tool. See also what ECN brokers are and what their advantages are. Volume Oscillator is part of the family of oscillator indicators. Volume tracks purchases and sales over a period of time.
An oscillator is a technical instrument that has the form of sine waves. These waves will change over time above and below the center line. The volume indicator soit is very closely related to volatility. The oscillator measures volume as the difference between two moving averages :. The difference between the two moving averages is then displayed as a sinusoid line, expressed as a percentage.
The Volume Oscillator settings can be adjusted to suit your trading needs. The Volume Oscillator indicator moves above and below the center line. Moving above the midline gives us a positive value. And moving below the center line gives us a negative value. When a bullish or bearish trend is accompanied by an increase in volume, this is a sign of strength in the prevailing trend.
However, if an uptrend or downtrend is accompanied by a decrease in volume activity, this is a sign of weakness in the prevailing trend. We can use it to confirm a breakout of support or resistance. For example, a breakout of resistance accompanied by an increase in volume indicates a strong movement.
This is a great tool for detecting false breakouts. Below we will describe the most popular Forex volume indicators and explain why Volume Zone Oscillator is the best volume indicator in trading. See also which brokers have the lowest spread.