Calculating forex trading volume is essential for understanding market activity, identifying trends, and validating trade setups. While the decentralised nature of the forex market means exact global volume figures are unavailable, traders can still estimate trading volume using several tools and methods.

This article explains how forex trading volume is calculated, what it really represents, and how to use it effectively in trading strategies.

What Is Forex Trading Volume?

Forex trading volume refers to the total number of currency units exchanged during a given period. Unlike centralised markets like stocks, the forex market operates over-the-counter (OTC), meaning trades are executed via brokers, ECNs, and liquidity providers without a central exchange.

Volume can be observed in two main forms:

• Tick Volume: Number of price changes (ticks) in a candle; commonly used as a proxy for actual volume in forex
• Real Volume: The total quantity of currency traded; only available via some brokers and institutional platforms

Why Forex Volume Matters

• Trend Confirmation: Rising volume during a trend indicates strength
• Reversals: Divergence between price and volume can signal a potential reversal
• Breakout Validity: High volume confirms breakout reliability

How to Calculate Forex Volume

Because true volume is rarely accessible for retail traders, calculation is usually based on tick volume or broker-reported volume.

1. Tick Volume (Most Common)

Tick volume measures the number of price updates (ticks) within a candle. Platforms like MetaTrader 4 (MT4), MetaTrader 5 (MT5), and TradingView display tick volume as a histogram.

How to Calculate Manually (Tick Volume Approximation):

1. Choose a time period (e.g. 1 hour)
2. Count how many times price changes within that hour
3. Sum all ticks for that candle

Example:
If EUR/USD changes price 120 times on a 1-hour chart, the tick volume = 120

Note: This does not represent the actual quantity of currency traded, but is still effective for identifying momentum.

2. Broker Volume (Where Available)

Some brokers (like OANDA, FXCM, or futures brokers) provide actual volume data from their client base or liquidity pool.

To calculate trading volume from this data:

Volume = Lots Traded × Lot Size

• Standard lot = 100,000 units
• Mini lot = 10,000 units
• Micro lot = 1,000 units

Example:
50 standard lots of GBP/USD traded =
50 × 100,000 = 5,000,000 GBP volume

3. Using Futures Data (e.g. CME)

CME futures data on currency pairs like EUR/USD or GBP/USD gives real volume based on exchange contracts. While not identical to spot forex, it can act as a reliable proxy.

Example:
CME shows 75,000 EUR/USD contracts traded
Each contract = 125,000 EUR
Total Volume = 75,000 × 125,000 = 9.375 billion EUR

Tools to Access Forex Volume Data

• MetaTrader 4/5: Tick volume by default
• TradingView: Tick volume for most forex pairs, and real volume for CFD-backed symbols
• NinjaTrader or CQG: Institutional futures volume
• Brokers like OANDA, FXCM: Offer proprietary volume indicators
• Volume Profile Tools: For advanced traders using MT5 or TradingView

Case Study: Using Tick Volume in a Trade Strategy

Strategy: Breakout Confirmation
Trader: Arjun, swing trader on GBP/USD

• Identified a resistance level at 1.2750
• Waited for breakout with increased tick volume on MT4
• Saw volume spike 2x above average on the breakout candle
• Entered long trade with stop below the breakout candle

Result: 85-pip move captured as volume supported the breakout strength

This shows that tick volume, although not precise, is effective in validating real price action.

Key Takeaways

• Forex volume is mostly estimated through tick volume due to the decentralised market structure
• Real volume is available via some brokers and futures data
• Volume analysis helps validate trends, breakouts, and reversals
• Tools like MT4, TradingView, and futures platforms can aid volume calculation
• Combining volume with other indicators like RSI, MACD, or moving averages enhances accuracy

Frequently Asked Questions

How accurate is tick volume in forex?

Tick volume is a strong proxy for real volume, especially on liquid pairs like EUR/USD. Studies have shown a high correlation with actual traded volume.

Can I get real forex volume as a retail trader?

Yes, but only from brokers who provide it (e.g. OANDA, FXCM) or from futures data providers like CME.

Does volume affect forex prices?

Yes. While price is influenced by order flow, volume reflects market interest and participation, which often precedes price movements.

Is high volume always a good thing in trading?

Not always. Volume spikes can signal both continuation or exhaustion, depending on the context and price action.

What’s the best way to use volume in forex trading?

Use volume to confirm breakouts, support/resistance strength, and identify divergence signals in combination with other tools.