Volatility

0
18
Volatility
Last modified: May 3, 2021
Estimated reading time: < 1 min

Volatility is a measure of the amount by which price fluctuates over a given period.

In forex trading, volatility measures how large the upswings and downswings are for a particular currency pair.

When a currency’s price fluctuates wildly up and down, it is said to have high volatility.

When a currency pair does not fluctuate as much, it is said to have low volatility.

It’s important to note how volatile a currency pair is before opening a trade.

Volatility should always be taken into consideration when choosing your position size and stop loss level.


If this article seems useful for your then please click the like button below. You can also share your valuable feedback or ask questions in the below comment section. Also, subscribe to our newsletter for trading-related updates.
Was this article helpful?
Dislike 0 0 of 0 found this article helpful.

OPEN A DEMO ACCOUNT

Previous articleTreasuries
Next articleVolume
FXPedia.info helps individual traders learn how to trade the forex market. We introduce people to the world of currency trading and provide educational content to help them learn how to become profitable traders. We're also a community of traders that support each other on our daily trading journey.

LEAVE A REPLY

Please enter your comment!
Please enter your name here