Explanation of Forex Volatility

If you want to understand forex trading or foreign exchange, then volatility is the frequency of trades that occur in a certain period. For those of you who want high profits, you can try the most popular forex trading, namely EUR / JPN and GBP / USD. This is due to the high volatility of the two trades above. So, you can get big profits in a short time. Learn more on http://www.nas100brokers.com/volatility75index.html.
Even though the returns are high, the risk of currency depreciation is just as great. Because this type of trading is known as a high return and high risk. As for other foreign currencies, some have low volatility. Thus, rising and falling currencies are more stable. Therefore, the potential profit is lower than a foreign exchange with a higher level of volatility. Likewise with the risks. As explained above, volatility is the most important characteristic in the money market or forex. The following is an explanation of volatility in the money market or forex: Volatility Becomes a Market Mood Volatility is the amount of price change that shows the market fluctuation in a certain period. Why is volatility referred to as the Market Mood? Because you can see stock prices increase or decrease when the volatility is high. When the market is calm, it means that there is low volatility, where sellers and buyers do not control the market. Profit is directly proportional to the risk If the volatility is high, then you will get a big profit. This is because the price has jumped from the previous closing price. This is directly proportional to the risk opportunities because no one can predict market movements. Use Stop loss When profit is directly proportional to risk, then you can use a stop loss that is lower than your target profit.