Volatility

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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.


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