FOREX Tick

Some people ask me about what FOREX tick is, and how this little thing has an affect on FOREX trading. It’s not like small bug that loves to suck blood. Tick in FOREX is an event, when price of a currency pair changes from A to B.The moment that a new price is registered, a new tick also takes place.

Fx market is discrete. FOREX tick are the discrete price changes that drives it. To combine all buy orders and all sell orders, and to compute a new price based on the supply and demand rule, there is a central computer system. The changes to FOREX ticks together with the price are created by the computer, and these adjustments are spread to all FOREX brokers all around the world.

When the price of USD goes down with a gap as you often see on FX live charts, that is mainly because everyone wants to sell USD, and only a few people want to buy it. Currency forex market can not be continuous by its nature. In order to figure out the following price of a currency pair, you should merge all sellers and all buyers first.

You may also base your Fx trading strategies on FOREX ticks Just as gap trading which uses ticks. Scalping strategies are also based on ticks.

You can often predict the next tick movement and make a few pips of profit every few minutes by looking at the tick chart.

You may also watch my video tutorial by clicking on the button below for more details on how exactly it is done.

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