Do you use bid/ask or last traded price?

Discussion in 'Strategy Development' started by vincegata, Sep 4, 2012.

  1. Hello,

    Do you use bid/ask or last traded price? What about specifically in FOREX?

    Are there pro and cons of using one or another?

    TIA
     
  2. dom993

    dom993

    For (cash) forex there is no transaction history (some brokers give you a "last" traded price, but this is never representative of the entire market, since most of it is traded directly bank to bank) ... so the best proxy for where the market is trading at is the bid/ask.

    To get transaction price & volume history chart the forex futures (6E, etc). Prices are different from the cash market, and of course volume is for the futures & has nothing to do with the cash market, but that's not a big issue if you are only trading those futures.
     
  3. I see, thanks for the post.