Volatility is a calculation that determines the rise and fall of prices in stocks or foreign exchange. The difference between the value of shares and foreign exchange will represent the market, then have an impact on the trading sector. On http://www.nas100brokers.com/volatility75index.html you can learn about our Volatility 75 Index. Markets with high volatility can influence price movements more quickly than markets with low volatility. Apart from that, volatility can also be used to measure risk. However, you cannot use it as a benchmark for foreign exchange transactions. Usually, the highest volatility is in the GBP / USD pair, GBP / JPY, EUR / JPY, to EUR / USD. However, the size and size of volatility can change, such as the times when volatility increases and slows down.
Volatility really affects the risk that occurs when you trade in certain currencies. The higher the volatility, the more profit you get. The definition of volatility can also vary, especially when it comes to fluctuations in share value prices and price differences in foreign currencies. That is, volatility is the main character in the money market or forex. This makes the forex called the most extensive market in the world because it seeks to profit from changing market price movements.
Broadly speaking, stock volatility is the standard deviation calculated annually. Then, stock volatility is used to measure stock risk in the following year. This is due to the number of different transactions, which then results in changes in share prices in a short time. In fact, stock prices tend to be stable. If you make stock transactions to get a profit in a short time, then stocks with high volatility are more likely to experience price increases, even though the risk is higher. In the stock sector, you can estimate volatility with historical data and trade data.
Volatility will increase if there is new information that is different from market expectations at the time of the release of the data. Usually, brokers provide Calendar Economy to notify the schedule of data releases or events that increase volatility.