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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.
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