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A Wealth of Knowledge



News · Economic calendar · Random concept

Volatility

The term "volatility" refers to the rate at which the currency pair fluctuates over a short period of time. It is said that if the market can move up and down drastically in a relatively short period of time, then the market is regarded as being volatile. This then creates trading opportunities for traders. Consider volatility as waves at the beach, this provides opportunity for surfers to ride the wave. If then for whatever reason there isn't one or there are only small waves then surfers may not get to ride for a long time. This is volatility in the markets which then gives trading opportunities.

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