Forex Volatility meaning
Forex Volatility can be monitored in daily, weekly, Monthly or by shorter time frames like hourly and longer time frames like yealy. If one currency is rising that means the other currency in the pair is falling. For example, if the EUR/USD is rising, the euro is going up in value, and the U.S. dollar is going down in value.
The most FX volatile currency pairs are GBP/JPY, EUR/NZD and GBP/AUD. The least FX volatile currency pairs are EUR/GBP, NZD/USD and EUR/CHF.
Usually most of the foreign exchange brokers provide the currencies volatility on their online trading platforms or their websites.
What is volatility in finance?
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.
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