FX market liquidity - where to get the data? | Forex Factory

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FX market liquidity - where to get the data?

  • #1
  • First Post: Jan 15, 2012 3:48am Jan 15, 2012 3:48am
Hi,

Does anyone knows where to get that information for free? Just hear it constantly on the news that market is not liquid today or something like that, where the hell they get that information from?
  • #2
  • Jan 15, 2012 4:06am Jan 15, 2012 4:06am
Quoting dns_di
Hi,

Does anyone knows where to get that information for free? Just hear it constantly on the news that market is not liquid today or something like that, where the hell they get that information from?
You can read it in the charts. No need for actual data. Illiquid markets will be either very slow moving markets or many unpredictable spike typ moves. Also, if you have a variable spread broker then spread is often a good indicator, large spread suggest illiquidity
  • #3
  • Jan 15, 2012 4:08am Jan 15, 2012 4:08am
Quoting Agro
You can read it in the charts. No need for actual data. Illiquid markets will be either very slow moving markets or many unpredictable spike typ moves. Also, if you have a variable spread broker then spread is often a good indicator, large spread suggest illiquidity

Good point about spread!

Thanks
  • #4
  • Jan 15, 2012 8:19am Jan 15, 2012 8:19am
Quoting dns_di
Good point about spread!

Thanks
there is liquidity when session overlaps then slows when traders have lunch break. As well market is liquid when news is announced. Charts are also a good way to tell, the price action and the daily average pip movements made.
  • #5
  • Jan 15, 2012 8:21am Jan 15, 2012 8:21am
Quoting soyamilk
there is liquidity when session overlaps then slows when traders have lunch break. As well market is liquid when news is announced. Charts are also a good way to tell, the price action and the daily average pip movements made.
Man do you know if pro traders (in the banks) leave open position overnight? Or they clear out before they go home?
  • #6
  • Jan 15, 2012 10:42am Jan 15, 2012 10:42am
I give u the clue


"candle size"
Trade responsiblypatience is the key/Swing trader
  • #7
  • Jan 15, 2012 11:07am Jan 15, 2012 11:07am
Quoting dns_di
Man do you know if pro traders (in the banks) leave open position overnight? Or they clear out before they go home?

it depends on two things

1. profit target met?
2. they may just pass their positions onto the next desk. for example trader in tokyo might pass his book onto zurich
  • #8
  • Jan 15, 2012 11:44am Jan 15, 2012 11:44am
Quoting mfoste1
it depends on two things

1. profit target met?
2. they may just pass their positions onto the next desk. for example trader in tokyo might pass his book onto zurich
Are you Fx trader in a bank or used to be one?
  • #9
  • Jan 15, 2012 12:14pm Jan 15, 2012 12:14pm
If you havent already, check out the top left corner of FF frontpage when the market is open. If I remember correctly, they collect liquidity info from several brokers. According to my experience it gives pretty good view on liquidity in the market.
  • #10
  • Jan 15, 2012 12:48pm Jan 15, 2012 12:48pm
One more question from me.

It is said that forex is 24 hour market, i.e. it starts in Australia joined by Japan in few hours, following UK and finally US.

The question is why the market moves when e.g. in Australia holiday and banks are closed and during that 2 hour gap between US close and JP open market moves, why? Where the trading take place?
  • #11
  • Jan 15, 2012 1:04pm Jan 15, 2012 1:04pm
Cant say that I have a clear answer to that one. Maybe hedge funds & us private traders?
  • #12
  • Jan 15, 2012 1:15pm Jan 15, 2012 1:15pm
Quoting Whistlepips
Cant say that I have a clear answer to that one. Maybe hedge funds & us private traders?
I think I got this one there is a small iseland full of sheep left just near Australia...

Anyways hedge funds and us private traders has to buy currency on interbank market because forex is interbank, which means some bank somewhere should be open, if they all closed = no movement.
  • #13
  • Jan 15, 2012 11:09pm Jan 15, 2012 11:09pm
Quoting dns_di
I think I got this one there is a small iseland full of sheep left just near Australia...

Anyways hedge funds and us private traders has to buy currency on interbank market because forex is interbank, which means some bank somewhere should be open, if they all closed = no movement.
Yep, there is always somewhere open. Also, banks are not the only players in the market anymore. And finally, banks do not keep strict hours when it comes to trading operations, they have 24 hour trading desks.
  • #14
  • Jan 15, 2012 11:12pm Jan 15, 2012 11:12pm
Quoting dns_di
Hi,

Does anyone knows where to get that information for free? Just hear it constantly on the news that market is not liquid today or something like that, where the hell they get that information from?
Put in a large market order and immediately cover. If you're good, it shouldnt cost a thing.
Lot size divided by pip movement = liquidity ATM.
  • #15
  • Last Post: Edited 2:31am Jan 16, 2012 12:51am | Edited 2:31am
Quoting Agro
Yep, there is always somewhere open. Also, banks are not the only players in the market anymore. And finally, banks do not keep strict hours when it comes to trading operations, they have 24 hour trading desks.

Interesting...

and who else provide liquidity on the market?

2EmeralEyes

Man if I had a couple of billion dollars I would have already played with them on the market just to get the idea of what sums move the market and in what fassion.

One more question from me - what leverage is being used in banks to trade currency and what risk?
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