Liquidity in EURUSD / Euro FX 6E
Hello dear traders
Compared to July 2024 compared to December 2024, liquidity in Euro 6E has reduced by a factor of three. In 2024, the DoM had ten levels of up to 4000 lots on the ask and bid side. Currently, there are between 1200-1500 lots. This has to do with many factors, including the election in America, the upcoming election in Germany, and other political influencing factors within the EU and the world. In addition, it is completely normal for liquidity to be withdrawn from the market at the end of the year and gradually reintroduced from mid-January of the new year. In the EURUSD foreign exchange market, liquidity is 100 times greater than in the Euro FX 6E future market, but there it is also currently only around a third of the values that were present in summer 24. Due to the withdrawal of liquidity, volatility has understandably doubled. Generally, high liquidity in an asset shows interest from the big players. Of course, interest in the Euro US dollar is generally very high, but, as already written, political factors are responsible for the fact that there is still great uncertainty about adding further liquidity. I believe that this uncertainty will reduce in the next few months and we will see significantly more liquidity in both the Future 6E and the Forex EURUSD. The situation is currently unsatisfactory for us too. The higher the liquidity in the market, the better we are able to read the algorithms of the big players. Higher liquidity requires the increased use of algorithms. This will inevitably significantly reduce volatility, but future price movements can be predicted more clearly through algorithm analysis. Some traders like to make a lot of money in a short period of time. This is precisely why the S&P or NASDAQ is a popular trading instrument, as the volatility is very high there. Unfortunately, however, most people forget that 90% of traders lose. Of course, 10% of traders will reach their goal faster, but 90% will also lose their money faster. High volatility usually means low liquidity, and low liquidity also shows little interest from the big players. A beginner should therefore generally start in markets with high liquidity and once he has reached his break-even point, markets with higher volatility are easier to trade. This can significantly reduce his losses.
I wish you continued success in trading.
Best wishes, Michael
Hello dear traders
Compared to July 2024 compared to December 2024, liquidity in Euro 6E has reduced by a factor of three. In 2024, the DoM had ten levels of up to 4000 lots on the ask and bid side. Currently, there are between 1200-1500 lots. This has to do with many factors, including the election in America, the upcoming election in Germany, and other political influencing factors within the EU and the world. In addition, it is completely normal for liquidity to be withdrawn from the market at the end of the year and gradually reintroduced from mid-January of the new year. In the EURUSD foreign exchange market, liquidity is 100 times greater than in the Euro FX 6E future market, but there it is also currently only around a third of the values that were present in summer 24. Due to the withdrawal of liquidity, volatility has understandably doubled. Generally, high liquidity in an asset shows interest from the big players. Of course, interest in the Euro US dollar is generally very high, but, as already written, political factors are responsible for the fact that there is still great uncertainty about adding further liquidity. I believe that this uncertainty will reduce in the next few months and we will see significantly more liquidity in both the Future 6E and the Forex EURUSD. The situation is currently unsatisfactory for us too. The higher the liquidity in the market, the better we are able to read the algorithms of the big players. Higher liquidity requires the increased use of algorithms. This will inevitably significantly reduce volatility, but future price movements can be predicted more clearly through algorithm analysis. Some traders like to make a lot of money in a short period of time. This is precisely why the S&P or NASDAQ is a popular trading instrument, as the volatility is very high there. Unfortunately, however, most people forget that 90% of traders lose. Of course, 10% of traders will reach their goal faster, but 90% will also lose their money faster. High volatility usually means low liquidity, and low liquidity also shows little interest from the big players. A beginner should therefore generally start in markets with high liquidity and once he has reached his break-even point, markets with higher volatility are easier to trade. This can significantly reduce his losses.
I wish you continued success in trading.
Best wishes, Michael
Forget:That does not work, amateurs build the ark, pros the Titanic!
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