hard · Volume Price Analysis

In the Spot Foreign Exchange market, why is tick volume considered a reliable proxy for actual transaction volume despite the lack of a centralized exchange?

  1. Tick volume correlates approximately 90% with actual transaction volume data.
  2. Tick volume represents the actual number of contracts traded through the interbank network.
  3. Brokers use tick volume to calculate the exact bid-ask spread capturing profit per session.
  4. Central banks mandate the reporting of tick counts as a substitute for volume reporting.

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