Spot forex and currency futures: where the real volume is

The currency market is the largest in the world, but spot forex doesn't trade in one place. Banks, liquidity providers and brokers deal with each other in a decentralized way. No single participant sees every trade.

The volume problem in spot forex

That's why the "volume" many forex platforms show is tick volume: how many times the price changed in the broker's feed. It can be a rough gauge of activity, but it doesn't tell you how many contracts traded or who was the aggressor. Without that there is no real footprint or delta.

The alternative: currency futures

Major currencies also trade as futures on CME, a centralized, regulated exchange. Every trade is recorded with its volume and aggressor side, and there is a single order book. Examples: 6E (euro), 6B (pound), 6J (yen), 6A (Australian dollar), 6C (Canadian dollar) and 6S (Swiss franc).

Some are quoted "inverted" relative to the spot pair. 6J, for example, is priced in dollars per yen: when USD/JPY falls, 6J rises.

How they're used

• Analyze the future's order flow (footprint, DOM, delta) to see who is active.
• Use the future's key levels as a reference for the spot pair.
• Remember that futures and spot prices aren't identical: there's a gap due to interest rates and expiry.

In IMBALIX, spot forex will be shown with charts and indicators, with tick volume labeled as such. Currency order flow will be done with futures.