Forex Liquidity refers to the ease with which a currency pair can be bought or sold in the market without causing a significant impact on its price. It is a measure of the markets ability to absorb large trading volumes without causing substantial price fluctuations.

Liquidity providers in Forex are financial institutions or entities that play a crucial role in ensuring the smooth functioning of the Forex market by offering a constant stream of buy and sell prices for currency pairs.

Our platform utilizes a comprehensive approach to gauge liquidity in Forex. It gathers data from many brokers and the top 10 traded currencies to compute the liquidity per minute for the last 48 hours. This calculation method empowers traders to observe fluctuations and trends, providing a real-time market pulse.

The Forex liquidity chart presents an adjustable timeframe, enabling Forex traders to focus on specific periods and witness liquidity fluctuations during those intervals. We use the average liquidity of the past 24 hours as the baseline (100% liquidity). Any deviation from this average is expressed as a percentage. For instance, a reading of 110% indicates that the current liquidity is 10% higher than the average of the past day.

The table on the left showcases the average liquidity across recent trading sessions, providing a comprehensive overview of liquidity variations during those periods.

Since Forex is an over the counter market, there is no official data about volume and open interest, so the number of price ticks can estimate liquidity and spreads. For example, a high amount of price ticks and a low spread will signify a high liquidity, while a low amount of price ticks and a high spread will signify a low liquidity.