
What is Volatility?
First, what is volatility? In finance, volatility is a measure of the riskiness of a security. A high volatility means that investors can lose money in a relatively short period of time. Volatility, when translated into currency is typically measured in percentage. A currency with a high volatility is one that could fluctuate in a very unpredictable way in response to the price of another currency.
And what is risk?
Risk is an expectation for a certain monetary value to occur. Volatility is not a measure of the money value of the forex pair (either positive or … Read More