Volatility of Forex Market is Attractive?
Forex Market volatility can be admitted as one of the most attractive factors for potential investors.
However, recently it has been at its lowest level since 2014.
Traders consider the FX market, first of all, because of the numerous possibilities of diversifying their trading portfolios, the variety of available trading instruments and the advantage to trade from any device and place in the world.
Volatility can be considered an opportunity, and at the same time, can work against traders by becoming higher risks.
Market Volatility and Spread
There are certain moments that the spreads get wider than normal, and you may need to know when and prepare your funds/positions for that.
- Important news release
- During political uncertainty
- Unexpected events/natural disaster
- The close of the business day(weekends)
It is typical that spread gets wider than 10 – 20 pips in these situations.
In case, your broker offers “variable/floating spreads”, then the spread may change at anytime, depending on the available market liquidity.
In case of “fixed spread”, trading maybe disabled during these situations. (depends on each broker’s condition)