Forex vs Stocks trading

[johntherevelato]

I was wondering about this.

People have told me about how great it is to trade forex.

Over here in the UK, the spreadbet companies allow greater leverage per pip(up to £300/pip!!!).

However, as far as I'm aware there is no volume indicator for forex, which is clearly so important in signalling good trading opportunities.

I know, the idea is to wait for the Fed to come out with announcements and try to pre-empt the market but without such an important indicator as volume, surely it's more difficult to be certain of movements.

I'd guess that forex futures would have a bearing here.

[JayF]

Your absolutely correct. It is a bit of a challenge to change over to Forex if volume is a significant part of your trading style. Again, as you state using the volume on the side-by-side currency futures is a decent substitute. Keep in mind that the volume on Globex drops more significantly then the interest in Forex on the same currency.

One easy way to "overlay" the side-by-side future's volume on a Forex chart is by using the EFS 2 Custom studies, customVolume.efs. To do this, click Chart Options --> Formulas --> EFS 2 Custom --> customVolume.efs and then put the corresponding side-by-side symbol in the Symbol row and the Value column.

For instance for the Euro/USD it would look like this.