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Balance your risks and gains
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High and low volatility in FX trading
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Trading instruments, including currency pairs, can experience high or low volatility. Let’s dig deeper into what each level of volatility offers.
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High volatility:
High risk, high potential returns
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These instruments tend to show sharp, frequent and often unexpected price spikes.
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High-volatility
FX pairs:
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Low volatility:
Steadier performance, lower risks
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Such instruments tend to move up or down more slowly than the rest of the market.
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Which is better?
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The instrument you choose should depend on the size of your trading capital, your trading style, risk tolerance, financial goals and time horizon.
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It’s up to you to decide
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A risk-averse trader may be advised to choose a currency pair with low volatility.
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Conversely, a risk-seeking trader is likely to opt for a pair with higher volatility, seeking to capitalize on larger price fluctuations it offers.
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Try trading on a new instrument
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Whatever your trading style, trading on a new instrument is always an challenge. Combining high- and low-risk instruments in a well-balanced portfolio helps you better manage potential risks and returns.
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Open trade
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Trade responsibly: Trading forex and CFDs is highly speculative, carries an inherent risk of loss, and is not suitable for all investors. Before using our services, you are strongly advised to read and ensure that you understand the relevant risk disclosures and warnings here. This email may contain confidential or privileged information. You received this email by accepting the terms of our Privacy Policy. If you didn’t create this account or received this email in error, please do not forward it to anyone else, erase all copies and attachments, and notify us.
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