Currency Liquidity and Forex Liquidity Chart

Currency Liquidity: Real Time Forex Liquidity Chart

Liquidity is an indicator that measures the degree of how quick an asset could be bought or sold e.g. liquidated. Forex liquidity indicates the liquidity of currency pairs and their ability to transact. For this reason, we have created a comprehensive Forex liquidity chart that shows the Forex market liquidity during different hours.

How to Use the Forex Liquidity Chart

  • The liquidity Forex indicator is represented as a histogram with an X and Y axes.
  • The Y axis represents the level of liquidity in Forex.
  • The X axis indicates the time concerning the respective foreign currency liquidity level.
  • The liquidity Forex indicator is used by intersecting the X and Y axes to get the % Forex liquidity in specific time frames.
  • The 100% liquidity of currency is taken as the average daily value.
  • A value above 100% means that liquidity in Forex is higher than usual, while a reading below 100% suggests that liquidity of currency pairs is lower than the average.

Tip of the day: Higher Forex market liquidity usually means smoother trading sessions with many Forex transactions and tighter spreads. Stick to time frames with higher foreign currency liquidity to take less risk and to implement more advantageous trades.

Troubles with the Foreign Currency Liquidity Tool?

Having troubles understanding the liquidity Forex indicator? Ping us using our Contact page and ask your questions. We will be more than happy to help you with your query!

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