Do you prefer high or low volatility?

Discussion in 'General Forex Discussion' started by Rambo35, Oct 27, 2014.

  1. Rambo35

    Rambo35 Confirmed PaxForex Representative

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    Volatility is often viewed as a negative in that it represents uncertainty and risk. However, higher volatility usually makes forex trading more attractive to the forex trades because it creates bigger possibilities for profits.
     
  2. Azforex

    Azforex Trader

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    Its really depend on Markets ups and down mate :)
     
  3. hamzah7078

    hamzah7078 Trader

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    oftenviewedas a negative in hat it represents uncrtainty nd ris. However, higher volatility usually makes forex trading ore attractie o the forex trade because it creates bigger posibilities for rofit.
     
  4. chief

    chief Confirmed Tickmill Representative

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    i prefer high one, my scalping strategy would works great riding the market wave. but it would require a decent brokers with scalping friendly trading enviroment.
     
  5. nalu

    nalu Confirmed ProfiForex Representative

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    High market volatility is usually caused by fundamental events and can both be advantage and disadvantage to traders. The higher the volatility the riskier the trading of currency pair. And so it important to be careful in volatility trading.
     
  6. Fxpipper

    Fxpipper Master Trader

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    High market volatility over low volatility..for obvious reasons..
     
  7. chief

    chief Confirmed Tickmill Representative

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    i would prefer high volatility market. as my trading strategy scalping, volatile market condition even suit best my interest. but it also require a decent brokers company with friendly scalping trading enviroment.
     
  8. willy

    willy Trader

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    Agree with you, I think that is where the problem lies.The conditions surrounding our scalping strategy and the ones from the broker.
    Since a high volatility market are best time to execute scalp entry, they are integral to scalp.
     
  9. olivine

    olivine Trader

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    I seldom use scalping technique , I like less volatile market. Volatility is not easy to handle for every one. Having low experience trader should not try it. Do practice on demo in volatile market to get practice . Some brokers had restrictions for scalping. I think smooth market is good for making normal profits.
     
  10. Sarah12

    Sarah12 Newbie

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    For scalpers a High Volatility would do more good than harm,but for a beginner a low volatility would be okay.Some scalpers would prefer to trade on a strongly directional, highly liquid and volatile markets. This choice to me is mostly a matter of personal preference
     
  11. Danitilla

    Danitilla Newbie

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    Volatility in the markets is like a double-edged sword. It can serve to your advantage or destroy your account as well. But for a good trader it may really provide an avenue to take advantage of the opportunities that volatility brings and make some good profits.
     
  12. eagle

    eagle Trader

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    As I'm a long term trader so volatility don't matter much to me. In fact if my TP or SL is taken on the same day it amazes me, because normally my trade outcome comes after 2 to 4 days.
     
  13. Alexfx79

    Alexfx79 Active Trader

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    Sometimes I do scalping, so better the pairs were volatile. If we talk about long time trades, it's no matter, in fact.
    But if I had to choose the exact variant, I'd choose the first one.
     
  14. Twin butterfly

    Twin butterfly Active Trader

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    I would prefer high volatility. It can generate more trading opportunities for short term traders but it also includes lots of risk so depends on how much risk i want.
     
  15. nikita sharma

    nikita sharma Trader

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    current market conditions are to decide this factor. one can not have a mindset to opt for either low or high ones. it depends on trading pattern
    and market conditions.
     
  16. Ally

    Ally Newbie

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    Actually nobody can predict with certainty the movements of market. For some people low volatility is good as they don’t want to take high risks so they cautiously make investments in risk averred assets and are satisfied with normal profits. However, news traders prefer to trade during news hours as they believe high risks lead to high profits. So, they usually trade in market of highly volatile instruments like EUR/USD, EUR/GBP, GBP/JPY etc. All in all for profit making it depends upon the trading strategy that we select according to our trading capability.
     
  17. Rjon111

    Rjon111 Newbie

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    For me higher volatility is better. The stop losses need to be larger but so are the take profits. The spread usually stays about the same so the relative 'cost' of trading actually decreases in times of higher volatility (obviously I am excluding times of high volatility due to news events like NFP etc. when the spread can grow massively)
     
  18. garena

    garena Active Trader

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    I like to trade in low votality but I like to see the market in high votality.
     
  19. Twin butterfly

    Twin butterfly Active Trader

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    Every trader has his own strategy according to which they work with market. Many traders like to work with high volatility in market because it can give more pips with market so they prefer high.
     
  20. Usman Khan

    Usman Khan Trader

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    High for scalper! :D
     

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