Volume indicators in spot FX: what does tick volume tell us?
Posted: Sat Oct 31, 2026 4:40 pm
Spot FX has no central exchange, so true volume is unavailable. Platforms show tick volume, a count of quote updates within a period. Studies have suggested tick volume often correlates with actual traded volume, but it remains a proxy.
A method to judge its usefulness: compare tick volume across sessions and around news. If it rises during London and New York hours and spikes on releases, it at least reflects activity. Whether it helps predict direction is a separate question.
Indicators built on volume, such as OBV or volume profile, can be applied to tick volume, but results should be tested rather than assumed from equity market experience.
Tick volume also differs between brokers, since each sees its own price feed. Comparing two brokers' tick volume on the same pair shows how consistent it is.
Futures volume on currency contracts is an alternative source of real volume, though only for exchange-traded hours.
Do you use tick volume in your analysis?
A method to judge its usefulness: compare tick volume across sessions and around news. If it rises during London and New York hours and spikes on releases, it at least reflects activity. Whether it helps predict direction is a separate question.
Indicators built on volume, such as OBV or volume profile, can be applied to tick volume, but results should be tested rather than assumed from equity market experience.
Tick volume also differs between brokers, since each sees its own price feed. Comparing two brokers' tick volume on the same pair shows how consistent it is.
Futures volume on currency contracts is an alternative source of real volume, though only for exchange-traded hours.
Do you use tick volume in your analysis?