Forex data stream, What is it?

[ImSleepy]

Studying forex to jump in soon. One forex web site said the forex market is a three trillion dollar a day volume market. How many transactions a day is that, say 100k, half a million, a million, a billion? Many dealing desk brokers offer free charting software with real time forex data. ESignal and like data services offer real time forex data for charting packages. I am thinking about using prorealtime.com data and charting software. Does the real time forex data streams from dealing desk brokers, ESignal and the like include every transaction made around the world similar to data from a stock or future exchange? If not, how do you know the data is true to the market? If the data is not true to the market the charting indicators will give false signals and no mater how good a trader you are you will lose. I assume no real time forex data stream can deliver all transactions. I then assume that the real time forex data is from a “portion” of the forex market. How am I assured the real time forex data I get from the sources mentioned above is true to the market, that the pricing is as true to the market as the data the monster banks or central banks get?

In some markets, real time data from a portion of the market is true to the market even though you are not getting all the real time data available. It is still accurate enough for charting and accurate signals. For example, wheat trades in Chicago USA and Minneapolis USA at the same times. Even though you may not get Minneapolis exchange data stream, the data stream from Chicago exchange is accurate to the market because traders naturally balance it out if the prices diverge to an arbitrage profit level and also Uncle Sam regulates it very tight. Obviously the Minneapolis exchange is so small the data from it is most likely not relevant to the world wheat market but I think using this example does illustrate my question sufficiently. How am I assured the forex market is balanced out in the same way as my example?

Is the real time forex data from dealing desk brokers just the listing or compilation in real time of all the in-house transactions? If the real time forex data from the dealing desk brokers is just the listing in real time of all the in-house transactions, how can that be an accurate representation of the forex market? That would be like trading wheat-using data from just the Minneapolis grain exchange. You would not have enough volume of data to feed real time charting software let alone have an accurate representation of the world wheat market. I don’t think you can only day trade the Minneapolis grain exchange unless you were a floor trader and even then you would be unsuccessful unless you had someone wake you up at the right times because you surely would have fallen asleep out of boredom.

If the real time forex data from dealing desk brokers is not just the listing or compilation in real time of all the in-house transactions then what is the source of the data? How comparable is it to the data used by the monster banks or central banks? What is the source of the real time forex data from ESignal, prorealtime.com and like data services? How comparable is it to the data used by the monster banks or central banks? I am asking these questions here because if I ask dealing desk brokers, ESignal, prorealtime.com and like data services, they will obviously say their data, what ever the source, is the best.

Last question. If I am correct, USA stock and stock option real time data includes each sale or transaction price and the number of shares traded (volume) in that one transaction. Also, futures real time data includes each sale or transaction price but does not include the volume of contracts in that one transaction. Does real time forex data include each sale or transaction price and volume?

Thanks for reading through this long set of questions. Any comments would be helpful.

ImSleepy

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The 3 trillion dollars per day is not really measurable in transactions. It is more an ocean of currency moving around the world also in supply and demand from import and export between currencies. Better not to think about it. Just get in a trade.

The data from Esignal and from brokers comes from the interbank market and is based on the current price which should be close the same everywhere. It is not reporting all transactions just showing the stream of price data from interbank sources. Again, better not to think about it. Just look at a chart and get in a trade. lol

Just open a demo account with ten brokers in different parts of the world and look at Esignal and any other charts and see if they have ever done something completely different. Rather than worry about this, why not look at charts, get in trades and make money?

I use Esignal and several broker data sources and occasionally see some slight differences here and there. But not enough to change any trading decisions. Esignal has the best data but there is hardly any difference between their charts and those from any broker.

best regards
Scott

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[peterparker]

Originally Posted by ImSleepy

Studying forex to jump in soon. One forex web site said the forex market is a three trillion dollar a day volume market. How many transactions a day is that, say 100k, half a million, a million, a billion? Many dealing desk brokers offer free charting software with real time forex data. ESignal and like data services offer real time forex data for charting packages. I am thinking about using prorealtime.com data and charting software. Does the real time forex data streams from dealing desk brokers, ESignal and the like include every transaction made around the world similar to data from a stock or future exchange? If not, how do you know the data is true to the market? If the data is not true to the market the charting indicators will give false signals and no mater how good a trader you are you will lose. I assume no real time forex data stream can deliver all transactions. I then assume that the real time forex data is from a “portion” of the forex market. How am I assured the real time forex data I get from the sources mentioned above is true to the market, that the pricing is as true to the market as the data the monster banks or central banks get?

In some markets, real time data from a portion of the market is true to the market even though you are not getting all the real time data available. It is still accurate enough for charting and accurate signals. For example, wheat trades in Chicago USA and Minneapolis USA at the same times. Even though you may not get Minneapolis exchange data stream, the data stream from Chicago exchange is accurate to the market because traders naturally balance it out if the prices diverge to an arbitrage profit level and also Uncle Sam regulates it very tight. Obviously the Minneapolis exchange is so small the data from it is most likely not relevant to the world wheat market but I think using this example does illustrate my question sufficiently. How am I assured the forex market is balanced out in the same way as my example?

Is the real time forex data from dealing desk brokers just the listing or compilation in real time of all the in-house transactions? If the real time forex data from the dealing desk brokers is just the listing in real time of all the in-house transactions, how can that be an accurate representation of the forex market? That would be like trading wheat-using data from just the Minneapolis grain exchange. You would not have enough volume of data to feed real time charting software let alone have an accurate representation of the world wheat market. I don’t think you can only day trade the Minneapolis grain exchange unless you were a floor trader and even then you would be unsuccessful unless you had someone wake you up at the right times because you surely would have fallen asleep out of boredom.

If the real time forex data from dealing desk brokers is not just the listing or compilation in real time of all the in-house transactions then what is the source of the data? How comparable is it to the data used by the monster banks or central banks? What is the source of the real time forex data from ESignal, prorealtime.com and like data services? How comparable is it to the data used by the monster banks or central banks? I am asking these questions here because if I ask dealing desk brokers, ESignal, prorealtime.com and like data services, they will obviously say their data, what ever the source, is the best.

Last question. If I am correct, USA stock and stock option real time data includes each sale or transaction price and the number of shares traded (volume) in that one transaction. Also, futures real time data includes each sale or transaction price but does not include the volume of contracts in that one transaction. Does real time forex data include each sale or transaction price and volume?

Thanks for reading through this long set of questions. Any comments would be helpful.

ImSleepy

There are other companies which are offering very good platforms as well. One should try searching other options available over internet as well.

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[aprilsun91]

The great thing about free forex data is that it enables you to analyze your forex system without paying for expensive forex data. However, getting something for free does have some major drawbacks, and one of these drawbacks in generally the ability to have the data customized to the end user. You get what you’re given.

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