“Why do we need to use Futures instead of Forex?” That’s a good question I get quite often.
The distinction between these two is this:
Futures:
Is centralized, which means that everybody on the planet sees the same price and
volumes traded. Most importantly, Futures allow us to see how much volume was traded on
the Bid as well as the Ask.
Forex:
Is decentralized, which means that only people who use the same data feed provider
see the same price and volumes. Data from each data provider can differ a bit. Not too much,
but the difference is there. The main disadvantage to Futures is that Forex providers are
unable to distinguish Bid and Ask (or if they do, they do it very badly). So, the best you can
get is Total volume (= sum of Bid + Ask).
Next article we will discuss about Transferring Trading Levels from Currency Futures to Forex.
#Orderflow #BinanceSquareFamily #Volume #VolumeTrade $XAU
