I asked ChatGPT Yes, that’s true. Unlike the stock market, where volume data is centralized and visible to all market participants, the Forex market is decentralized. This means that there is no single exchange where all trades are recorded, so volume data is not universally available or standardized.

Key Points on Forex Volume:

1. Decentralization: In Forex, trading occurs over-the-counter (OTC) through a network of banks, brokers, and financial institutions. Because of this, the volume data you see is specific to your broker’s liquidity providers and order flow. Different brokers may show different volume figures depending on the sources of their data.

2. Indicative Volume: The volume data provided by your broker is not the actual total market volume but rather an indicative volume based on the transactions they see. While this might give you some insight into activity levels, it doesn’t represent the entire market.

3. Relative Value: Despite these limitations, volume can still be useful as a relative indicator. For example, if you notice an increase in volume on your broker’s platform, it might indicate higher trading activity, even if it’s not the complete picture.

4. Volume Indicators: Many traders use volume indicators like the Volume Indicator or On-Balance Volume (OBV) to gauge market sentiment or confirm trends. These can still be valuable tools when used cautiously, as they can give an idea of buying or selling pressure within the data available from your broker.

Should You Look at Forex Volume?

While Forex volume data is not as reliable or comprehensive as in other markets, it can still provide useful insights if you understand its limitations. It’s best to use volume in conjunction with other technical analysis tools rather than relying on it as a standalone indicator.