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.

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.

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

What is Forex Swing Trading How to Find Good Setups

Forex Money Management System: Choosing the Right One

Best Forex Trading Accounts: Which One is Better

What is Forex: Beginners Guide To Forex Trading

What is Forex Swing Trading How to Find Good Setups

Forex Money Management System: Choosing the Right One

Best Forex Trading Accounts: Which One is Better

What is Forex: Beginners Guide To Forex Trading

Contrarian Trading Strategies in the Forex Market

Why to Consider Automatic Trading Strategy Generation

Disclaimer: Trading with Financial Instruments contains a great dose of risk. You should be aware that your capital is exposed to risk when trading. Sir Forex advises you not to trade if you do not understand the risk related with buying and selling Financial Contracts. The information at Sir Forex has informative purpose only. Do not base your trading decisions solely on the information on this website. Sir Forex does not take any responsibility for your profits or losses.