Forex Volatility

There is one thing in particular that wipes out more trader equity than anything else, the volatility! From 1980's up to this time, the distinctive characteristic of the foreign exchange market was its volatility. A currency volatility that was a reflection of major imbalances between national economies.

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.
Most forex traders simply can’t deal with volatility. Every trader should learn to deal with it in forex and that means knowing and understanding standard deviation or you will lose all your money! Currencies are volatile, and in theory you can trade for thousands in profits every day.

Volatility is typically measured in two ways

* Historical Volatility

Historical volatility is a measure of how much an exchange rate has varied over a given time period. Historical volatility is backward looking.

* Implied Volatility

Implied volatility is estimated of a security's price. In general, this volatility increases when the market is bearish and decreases when the market is bullish.
Understanding of standard deviation is important in forex trading, it tells you how volatile prices are. So what is it? Standard deviation is a statistical term that refers to and shows the volatility of price in any currency or financial instrument. It measures how widely values are dispersed from the mean or average.

ForexGen Scalping Enabled Account

Trade and scalp the market [ForexGen] has the pleasure to announce the availability of both Dealing Desk and No Dealing Desk Platforms. No Dealing option provide traders with direct access to the best bid/ask prices through multiple bank access. No re-quotes & No dealer confirmation is the main characteristic of the no dealing option made specifically for “scalpers” and active FX professionals. Absolute freedom to trade during news and economic events. The no dealing desk option allows traders to place entry orders inside the spread! Unlike competing FX firms, [ForexGen offers] traders all the advantage of a “no dealing desk” option.

Advantages of No Dealing Desk Option

* Trade the news without intervention or restrictions * Although spreads may vary in volatile market conditions, they are tried to be kept within the usually limits. * Place scalping orders without intervention or restrictions. * A client-friendly trading environment, No re-quotes. * Ability to place orders inside the spread * Competing rates from multiple banks * Spreads are variable and can move sharply * Ideal for active or professional FX traders

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