Forex trading is not centralized as well as stock trading, so that the volume measured on the trading platform does not show the entire trading volume of forex market participants, but limited only to those who trade in a particular broker. Thus the size of the volume of a broker for a particular currency pair may differ from other brokers
However, if you look at some of the strategies used in forex trading, you will find the trading strategy by using the volume indicator. It is certainly logical because of the rising volume of trade will lead to more predictable price movement or could easily be predicted. When the price moves uptrend, buy the volume up will cause the trend of increasingly strong and vice versa if the sell volume dominant then the trend will be weakened and could even turn bearish.
Trading strategy with the volume indicator is very relevant in the stock market (not the stock price index), because transactions on stock trading volume data always include, but are less relevant to the forex market. According to those who trade on Metatrader 4, the volume of data shown represent the number of trades that have been performed, depending on the server where the trader's broker to do the transaction. More and more traders are trading on a broker will be more accurate indicator of the volume displayed.
In this case the volume measured by tick, and when there is a change in the price bid (and ask) on the display trading platform, then the volume will increase. High volume is due to frequent price changes and vice versa showed low volume infrequent price changes. So the volume in the forex market is not measured in the number of contracts traded just like stock market.
However Metatrader platform used only by retail traders who are relatively less compared to the trader at a major financial institution that determines the market price movements. Trader large financial institutions and banks use trading platform which is totally different from retail traders who use Metatrader, so tick volume on Metatrader does not indicate the volume of transactions financial institutions traders. In addition, institutional traders are also not using the retail trader broker server.
If you happen to use a strategy that involves the volume of Metatrader indicators like volume, on balance volume, money flow index, indexes and other force, including if you use Expert Advisors (EA) based on the volume indicator, should you choose a broker that is highly liquid large. Please note that the accuracy of the volume on a live account is much more accurate than the demo account.
