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Forex Factory, one of the leading forex portals, has added a great addition in its market section – a gauge for real time liquidity. This addition can be very useful for traders.

The Forex Factory Market page’s highlight is the independent quotes – quotes from brokers are aggregated using FF’s proprietary system, providing independent real time quotes on forex exchange rates.

forex factory liquidity gaugeImage credit: Forex Factory blog – more data on this feature appears there.

Now, Forex Factory uses the data from these 17 brokers to show liquidity. There are colorful icons that show high, medium or low liquidity, and also the percentage of liquidity in comparison to the average. The data is loaded when the page loads, and toggling the “Live” checkbox makes the liquidity gauge to be updated in real time.

This liquidity gauge can be used by traders for various purposes – some traders prefer high liquidity for quick scalping. Some prefer quiet times so they can enter a position for hours or even days. This gauge can help them in finding the right time to trade, or to avoid trading, which is no less important.

This addition, isn’t automatically updated in real time and resides only on the Market page, as it’s still in testing. It will eventually reach the homepage.

As far as I know, this system is unique. I wonder if other portals will also add liquidity gauges like this one.