Forex market volatility is one of the most important tools within the FX market a trader should take into account while planning and choosing own FX trading strategy. As you know Forex is open worldwide 24/5 which makes it the most prosperous and advantageous for those traders who want to open positions whether for short or long time terms.

Volatility – is a statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index.

Commonly, the higher the volatility, the riskier the security. In other words, volatility refers to the amount of uncertainty or risk about the size of changes in a security's value. A higher volatility means that a security's value can potentially be spread out over a larger range of values. This means that the price of the security can change dramatically over a short time period in either direction. A lower volatility means that a security's value does not fluctuate dramatically, but changes in value at a steady pace over a period of time.

Technically, the term “Volatility” most frequently refers to the standard deviation of the change in value of a financial instrument over a specific time period. It is often used to quantify (describe in numbers) the risk of the currency pair over that time period.

Volatility is typically expressed in yearly terms, and it may either be an absolute number ($0.3000) or a fraction of the initial value (8.2%).

In general, volatility refers to the degree of unpredictable change over time of a certain currency pair exchange rate. It reflects the degree of risk faced by someone with exposure to that currency pair.

Volatility is often viewed as a negative in that it represents uncertainty and risk. However, higher volatility usually makes Forex trading more attractive to the market players. The possibility for profiting in volatile markets is a major consideration for day traders, and is in contrast to the long term investors' view of buy and hold.

Volatility does not imply direction. It just describes the level of fluctuations (moves) of an exchange rate.

The official time of the Forex market is Greenwich Time because London owns the hugest foreign exchange market from all existing and leverage opportunities over there are much higher like 200:1.Taking into consideration that you have to adjust for local time of a country you have a deal with you can achieve better results and gain profits eventually instead of losing money.

In addition to this you should take into account that activity at the Forex market in certain countries according to time zone depends on daily business hours so make sure you have considered this nuance of the FX markets either.

As for the Forex volatility every currency pair can boast having it when experiences the highest rises and drops moving constantly along with its prices. Volatility commonly takes place in particular periods of time - daily hours mostly, when the whole country is active and business deals are provided everywhere in the territory of this certain state. It happens like that because plenty of events happen during a day and Forex market responds properly so traders should just follow these changes and consider them while planning their daily trading strategies. It is a mistake to suppose that during Forex volatility process a currency doesn't experience any influence from its own country even if this country is developing one because on the contrary the most powerful influence is provided towards the currency by its own state.

The most important thing is to know when the highest volatility is provided at different foreign exchange markets and then provide all your suitable transactions to get more profits.

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