The VIX: Volatility index

Volatility is a term used to refer to the variation in a trading price over time. The broader the scope of the price variation, the higher the volatility is considered to be. For example, a security with sequential closing prices of 5, 20, 13, 7, and 17, is much more volatile than a similar security with sequential closing prices of 7, 9, 6, 8, and Securities with higher volatility are deemed riskier, as the price movement--whether up or down--is expected to be larger when compared to similar, but less volatile, securities.

The volatility of a pair is measured by calculating the standard deviation of its returns. The standard deviation is a measure of how widely values are dispersed from the average value the mean. Being aware of a security's volatility is important for every trader, as different levels of volatility are better suited to certain strategies and psychologies. For example, a Forex trader looking to steadily grow his capital without taking on a lot of risk would be advised to choose a currency pair with lower volatility.

On the other hand, a risk-seeking trader would look for a currency pair with higher volatility in order to cash in on the bigger price differentials that volatile pair offers. With the data from our tool, you will be able to determine which pairs are the most volatile; you can also see which are the most — and least — volatile days and hours of the week for specific pairs, thus allowing you to optimize your trading strategy. The degree of volatility is generated by different aspects of the paired currencies and their economies.

Additionally, different interest rate levels will cause a currency pair to be more volatile than pairs from economies with similar interest rates.

Additional drivers of volatility include inflation, government debt, and current account deficits; the political and economic stability of the country whose currency is in play will also influence FX volatility. As well, currencies not regulated by a central bank - such as Bitcoin and other cryptocurrencies - will be more volatile since they are inherently speculative.

At the top of the page, choose the number of weeks over which you wish to calculate pairs volatility. Notice that the longer the timeframe chosen, the lower the volatility compared to shorter more volatile periods. How would you best describe yourself?

Foreign Exchange Volatility | Currency Movement | Forex Volatility Chart | OANDA

Individual Investor Institutional Investor Financial Advisor Active Trader. Sign up to create alerts for Instruments, Economic Events and content by followed authors.

Foreign Exchange Volatility | Currency Movement | Forex Volatility Chart | OANDA

Already have an account? Non merci Naviguer vers cette version. Markets Commodities Real Time Commodities Metals Energy Grains Softs Meats Commodity Indices Gold Crude Oil WTI Brent Oil Silver Natural Gas Copper US Wheat. World Government Bonds Financial Futures Government Bond Spreads Bond Indices Forward Rates US 2Y T-Note US 10Y T-Note US 30Y T-Bond UK Gilt Euro Bund Euro SCHATZ.

Financial News Forex Commodities Stock Markets Economic Indicators Economy Technology More In News Most Popular Videos Economic Calendar Sports World Politics. Real Time Charts Live Charts Forex Chart Futures Chart Stocks Chart Indices Chart Interactive Forex Chart Interactive Futures Chart Interactive Indices Chart Interactive Stocks Chart Multiple Forex Charts Multiple Indices Charts.

Tools Technical Summary Technical Analysis Pivot Points Moving Averages Indicators Candlestick Patterns More In Technical Chart Patterns Fibonacci Calculator Pivot Point Calculator. Social Trading Top Performing Systems Sentiments Sentiments Outlook Leaderboards More in Social Trading Top Performing Members Top Single Pick Most Active Pickers Most Active Instruments.

Brokers Forex Brokers Binary Options Brokers CFD Brokers Stock Brokers Promotions Compare Forex Spreads Compare Forex Quotes More In Brokers Forex Demo Accounts Forex Live Accounts Press Releases Interviews Options Brokers Spread Betting Brokers Regulation. Calendars Economic Calendar Holiday Calendar Earnings Calendar Dividend Calendar Splits Calendar IPO Calendar Futures Expiry Calendar Investment Tools Stock Screener Fed Rate Monitor Tool Currency Converter Fibonacci Calculator More In Tools Forex Correlation Pivot Point Calculator Profit Calculator Margin Calculator Currencies Heat Map Forex Volatility Forward Rates Calculator Mortgage Calculator.

The importance of volatility for traders Being aware of a security's volatility is important for every trader, as different levels of volatility are better suited to certain strategies and psychologies. What affects the volatility of currency pairs? How to use the Forex Volatility Calculator?

The Forex Volatility Calculator tool generates the daily volatility for major, cross, and exotic currency pairs. The calculation is based on daily pip and percentage change, according to the chosen time frame. You can define the time frame by entering the amount of weeks. By clicking on an individual currency pair, you can see its corresponding hourly volatility charts, as well as the chart displaying its average volatility per weekday, across your chosen time frame.

Let us know here. Paste the following link in email, IM or website: Indices Commodities Forex Bonds More Categories. Indices Commodities Forex Bonds Stocks ETFs. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.

Volatility on Currencies

Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs stocks, indexes, futures and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes.

We use cookies to personalize your experience and analyze our traffic, and share this information with our partners. If you're happy with this continue to use our site without changing settings, or find out how to manage cookies.