Where order flow doesn't work: forex, CFDs, crypto exchanges and binary options
Order flow requires a central market and a real record of trades. Where that's missing, footprint and delta are estimates, not data. This applies to spot forex, all CFDs, crypto on ordinary crypto exchanges and products such as binary options.
Order flow in this group
Spot forex: an over-the-counter market where each broker sees its own slice. The volume in the platform is tick volume.
CFDs on anything (indices, gold, oil, stocks): a contract with a broker who sets the price. You can't see the market's order book. Comparison in the article Exchange or CFD broker.
Crypto on crypto exchanges: each exchange has its own book, some of the volume can be fake, and the biggest moves happen in leveraged perpetual contracts. The picture is incomplete. The exception is bitcoin and ether futures on the CME.
Binary options and similar products: a bet against the provider, not a market. I describe them in the article on binary options.
Instruments (8)
| Instrument | Symbol | Exchange | Tick value | Order flow |
|---|---|---|---|---|
| Spot forex (EUR/USD, GBP/USD and others at a broker) the broker's tick volume | — | over-the-counter market | — | Unsuitable |
| Index CFDs (US30, US500, DE40 and similar) the broker's price, not the market's | — | CFD broker | — | Unsuitable |
| CFDs on gold, oil and commodities (XAUUSD, OIL) | — | CFD broker | — | Unsuitable |
| Stock CFDs | — | CFD broker | — | Unsuitable |
| Spot crypto on crypto exchanges fragmented order books | — | many exchanges | — | Unsuitable |
| Crypto perpetual contracts | — | crypto exchanges | — | Unsuitable |
| Binary options | — | the provider | — | Unsuitable |
| Deferred contract months (not the front month) liquidity is almost entirely in the nearest month | — | every exchange | — | Unsuitable |
Other groups
- US stock indices
- European and Asian indices
- Interest rates and bonds
- Currencies (currency futures)
- Energy
- Metals
- Agricultural and livestock commodities
- Volatility and exchange-traded crypto
- Poland: Warsaw Stock Exchange
- US stocks and ETFs
- Options
- All instruments
Frequently asked questions
Does order flow work in forex?
Not in spot forex at a broker. In currencies, order flow makes sense on exchange-traded futures, e.g. 6E on the CME.
Does order flow work on CFDs?
No. A CFD is a contract with a broker, not an instrument with a central order book. A footprint on a CFD is calculated from the broker's data.
Educational content, not investment advice. Exchanges sometimes change contract specifications (tick size, multiplier, hours): check the current specification on the exchange website before trading. The rating concerns suitability for order flow analysis, not profitability. Leveraged futures involve a high risk of losing capital.