Volatility- instability of market conditions, demand, prices, which often occurs due to insufficient, that is, the inability of assets to quickly sell at a price close to the market.

Volatility is considered the most important financial performance, since it allows you to calculate financial risks(the likelihood of risk when using any financial instrument in a certain time period). For this, the average annual volatility is most often used.

What does volatility mean in the Forex market?

In the Forex currency market, volatility means the maximum and minimum price changes over a certain period of time. The greater the distance between the high and the low of the price for the allotted time interval, the stronger the volatility. The smaller this distance, the weaker the volatility.

Volatility in Forex can be measured both in points and as a percentage of the initial value of the value.

Important: It is necessary to clarify that the concept of volatility is not just the difference between. The benchmark of volatility is not the price value itself, but its trend. That is, it is more correct to understand volatility as the amount of deviation from the existing trend. If the trend shows high growth, and currency fluctuations occur within the price trend channel, such an instrument cannot be called volatile.

What types of volatility are there?

It is customary to distinguish between two types of volatility:

• Historical

It is a measure of the standard deviation of the value of an instrument over a specified period, which is determined based on historical data on price changes.

• Expected

Deviations calculated on the basis of the present value of the instrument, assuming that its market price reflects possible risks.

What does high and low currency volatility mean?

There are no standard values ​​for determining the strength of volatility, but many traders use the following values:

• Low volatility

If during one trading week the exchange rate has changed by 2-3% (up or down), in contrast to the closing price of the last trading week;

• High volatility

If during one trading week the exchange rate has changed in the range of 15%, in contrast to the closing price of the previous trading week.

What are the features of volatility?

The volatility of currency pairs on Forex has the following features:

• Volatility is cyclical. That is, it is constantly increasing, at first it reaches a maximum, then it weakens to a minimum;
• Volatility is constant. Not only in the sense that it is constantly increasing and weakening, but in the fact that it repeats itself. Based on this, it can be assumed that if today the price moves in this range, then tomorrow it will continue to move in the same range;
• Volatility tends to the average value. After the volatility reaches the maximum or minimum point of the market, it invariably returns to its average value and stays in it for some time. That is, if the minimum is 1%, and the maximum is 4%, then most of the time, the average price volatility is 2%. Knowing this feature, you can safely calculate the points of entry or exit from the market.

How to use volatility when trading Forex?

Volatility in Forex is crucial in assessing the risks of trading. This entails the need to change the trading lot and adjustments for margin trading.

Based on historical volatility data and predicting expected volatility, several rules of thumb can be developed that will significantly improve the effectiveness of a trading strategy:

• the choice of a currency pair for trading must be carried out depending on the current trading session, time of day and predicted currency volatility for this period of time;
• you cannot focus on volatility as an indicator of the strength and direction of the trend;
• the volatility of a currency pair can consist not only in a long purposeful movement in a certain direction. Volatility can also add up to movement within small limits.

Knowledge of the volatility of currencies in certain trading sessions can have a great influence on the quality of trading:

• European session - volatile European currencies: GBР / JPY, USD / CHF, GBР / USD and GBР / CHF;
• American session - GBР / CHF, GBР / JPY, USD / CHF;
• Pacific session - the most volatile pairs, which include japanese yen- GBР / JPY, USD / JPY, EUR / JPY and GBР / CHF cross-rate.

The more volatility, the more opportunities for earning, however, very high volatility also increases trading risks.

Useful related articles

Fortrader Suite 11, Second Floor, Sound & Vision House, Francis Rachel Str. Victoria Victoria, Mahe, Seychelles +7 10 248 2640568

Volatility, or volatility, is a statistical financial indicator that characterizes price volatility. This indicator is considered the most important in, since it is a measure of risk when using any financial instruments in a given time interval.

Currency market volatility, what is it? Its influence on the trading process

Volatility foreign exchange market- what it is? As stated above, volatility is volatility. Basically, volatility characterizes a certain range of price movement over a certain period of time.

In other words, the volatility of the foreign exchange market is a kind of corridor in which they are observed.

The boundaries of such corridors are built on the basis of the high / low points that occurred in a certain period of time.

In a simple sense, volatility, this is the range of fluctuations in the rate of one currency in a pair in relation to another... Well, the wider this range is, the greater the volatility will be, and this contributes to an increase in the opportunity to earn, because it is almost impossible to make a profit with a flat, especially when, for example, the exchange rate fluctuation is no more than 10 points, but is equal to 8 points.

But at the same time, the potential for getting more profit on the trend movement also increases. According to experts, low volatility has a beneficial effect on foreign exchange transactions carried out by enterprises in their economic activity... As for the foreign exchange market, for speculative transactions high volatility is preferable.

Volatility in Forex trading is of the utmost importance, since thanks to this indicator there is a relatively further trend movement. When calculating volatility, as a rule, statistical indicators of the selected standard deviation are used, so that investors can determine the risks of acquiring certain financial instruments.

As a rule, for the foreign exchange market they use average annual volatility indicators... Volatility can be expressed as a relative value of the original cost (100% ± 5%) or in absolute value($ 100 ± $ 5).

Note, however, that the range of price fluctuations is important, not the starting point itself. After all, trading in the foreign exchange market occurs precisely due to the fact that there is a change in the exchange rate.

Types of volatility found in the Forex market

With the concept of currency market volatility and what it is, we have found out. Now let's talk about the types of volatility. For today, there is the two main types of market volatility are:

• historical volatility
• and predictable.

In many textbooks, historical volatility is defined as the average annual standard deviation of previous price movements currencies.

Speaking simple language, historical volatility is an indicator of how much the value of a currency has fluctuated in any past time interval - a day, a week, a month, and so on.

For example, any share (in the case of stock trading) that you purchased last year for $ 100 is worth the same today. But this does not mean that its value has not changed throughout the year. With a high probability, we can say that at some time period it cost both $ 25 and $ 150, and possibly more / less. Just such price fluctuations have a significant impact on the final values ​​of historical volatility financial instruments (in our example, stocks).

The predicted volatility of the Forex market, or implied, is based on historical price fluctuations (historical volatility), but taking into account some additional factors... And traders are interested in this type of volatility much more than the previous one, since it is focused on upcoming events.

Predicted volatility is an estimate of the upcoming price trend exchange rate in any. Schematically predicted market volatility indicates how much market participants will seek to buy or sell a particular currency. At its core, the predicted volatility of the foreign exchange market is an indicator of the levels of risk that will arise when trading in the future.

Dependence of the volatility of the foreign exchange market on trading sessions

As can be seen from the statistical data, the volatility of each of the currency pairs can change from the fact that the trading session is open at a given time to carry out trading operations. We note right away that the highest volatility of the foreign exchange market is observed during the period of the so-called session crossovers, that is, when several exchange platforms operate at once (the number of participants and trading volumes are greater).

So the highest volatility Forex market, is observed during the period of intersection in the working time of the Asian and when the Asian session from 10:00 - 12:00 (Moscow time) enters the European. Also, a surge in the volatility of the foreign exchange market is observed from 16:00 - 18:00 (Moscow time), when the time of the European session crosses the American one.

What happens to market volatility during each trading session?

Let's analyze in more detail ...
So, if you are an early bird and get up after 4 in the morning, then you will have to trade during the Asian session, namely from 4:00 to 12:00 (Moscow time).

During this session, increased volatility is observed in such quotes as: GBP / CHF, GBP / JPY, then USD / JPY and EUR / JPY... Sometimes, there may be sharp exchange rate movements in other pairs, especially those that include JPY.

The highest market volatility occurs during the European session (10:00 - 19:00). This time is considered the most successful for making transactions on Forex, since during this period most of the financial, political and other events take place that very actively affect the exchange rates.

The increase in market volatility occurs due to changes in the rates of the single European currency, as well as the currencies of other countries that are not part of the European Union, which is affected. Here, increased volatility is observed in GBP / JPY, GBP / USD, and GBP / CHF with USD / CHF.

In the evening and at night (17:00 - 1:00), during which traders have an excellent opportunity to start trading after the day's work.

At that time, high volatility is observed: USD / CHF, GBP / JPY and GBP / CHF... Immediately, we note that during this trading session, high volatility can be observed in all pairs where the US dollar participates, since they depend on the release of important news that affects it.

Experts and experienced traders advise, when choosing a currency pair for trading, not to confuse its volatility with popularity (trading volume), since the trend movement corridor for popular currency pairs is not always wide enough, therefore, when choosing a trading instrument, be guided by other indicators as well.

How to use market volatility to your advantage in trading?

Many traders know what market volatility is, what is its meaning and the like, but not everyone understands how to use it in Forex trading. So how can you use it in trading? Let's figure it out.

Suppose that knowing the average daily volatility, for example, EUR / USD, which is 160 pips, with the price passage of 180 points in the upward direction during the trading day, you can assume that you should not expect further strong movement, which means it doesn't make sense.

Or, for example, the average hourly volatility of a pair with EUR / USD is 45 pips. During an hourly interval, you receive a signal to buy, but the price has already passed more than 30 points. Under such circumstances, a trade should be opened only when, according to forecasts, the price will move in the same direction and over the next hour.

In the same way, the value of the average volatility of the foreign exchange market is used during trading on higher time frames. For example, in the case when the average volatility, suppose for a week is 260 points, then after the price has passed 120-150 points from Monday, it can be assumed that, having still sufficient potential, it will move unhindered in the same direction. But at the same time, we recall that all this is within the limits of average indicators.

Of course, there are days on Forex when market volatility can be tens or even hundreds of points higher than the average, but it is recommended to take into account the average statistical data in the trading process.

Besides, knowing the volatility indicators of the foreign exchange market, You will be able to more successfully place stop orders ("SL" and "TP").
Let's say you know that on the chart the average volatility for any currency pair is 150 points, then you need to focus on this value, but at the same time take into account how much potential the price has left after passing a certain path.

When it comes to the economic state of the market, analysts are used to using the term "volatility".

Ordinary citizens do not quite understand what this word means: is it good for the market or not. In fact, volatility means rather simple phenomena, but in a veiled form.

Definition and types of volatility

Volatility is an indicator that indicates changes in an economic nature. In simple terms, volatility is the rate at which prices rise. The concept has nothing to do with inflation and.

For example, the volatility of the ruble is a change in its position: today it is growing, tomorrow it is falling. Such changes will be useful to those who are interested, they are depicted in the form of graphs, for example, the following:

The considered indicator is used to assess the possible from the use of a particular economic instrument. Such information may be needed by investors, brokers, management companies, etc.

This concept is displayed in the form of graphs of all changes in the pricing policy for a particular product for a separate period of time.

The value of changes is equal to the difference between the highest and lowest price points, which is fixed in the considered time interval:

A high indicator is characterized by instability, that is, such changes are difficult to predict. If you want to make a deal with a certain product, which in this moment high volatility, it is best to wait out these price spikes.

There are two types of such changes:

1. Historical is the deviation of the price from the original data, which is calculated based on the indicators for a certain time.
2. Expected is the variance that is calculated based on the assumptions that the market price will change over time.

Most often, historical fluctuations are used, observing changes in relation to a particular product over the past years. From the data obtained, one can draw reasoned conclusions and make a decision.

It is necessary to take this indicator into account in order to purchase goods not for the maximum possible price, which after a while will decrease to the minimum.

In order to determine the rate of change, in addition to theory, it is necessary to have knowledge in practice of applications of the product in question. Any changes in the economy do not appear out of nowhere, you need to understand what caused the inconsistency in a particular area.

Ruble volatility

The volatility of the ruble is usually calculated as an annual average or absolute. During such calculations, statistical material and its possible deviations are used. Thus, the possible risk is determined.

The concept of the volatility of the ruble includes its changes in relation to other currencies. The volatility of the ruble also has the following types:

1. Historical is the standard deviation of profit over time. This indicator is calculated based on statistical data.
2. Expected is the variance that is calculated from the current statistical value. Its essence lies in the fact that the market price can reflect all possible risks.
3. Historical expected is the assumption of expected deviations that may appear over the entire analysis period.

The volatility of the ruble is determined as follows:

• We determine for what period we need to calculate the changes. For example, from February 5 to April 1, 2015.
• In this interval, we find the maximum and minimum value of the ruble to the currency of interest to us.
• Subtract the minimum from the maximum indicator, divide the result in half and get the volatility of the ruble.

• The maximum value of the ruble is 60
• The minimum value of the ruble is 20

We carry out the calculation:

60 - 20 = 40. 402 = 20 - the volatility of the ruble for the period under review.

For a normal economy, stability is necessary, because a low indicator of the volatility of the ruble provokes an increase in rates or sanctions, and a high indicator - constant changes that negatively affect economic sphere the state.

Therefore, it is worth looking for the golden mean that will ensure the stability of currencies.

Volatility reasons

Changes in an economic instrument can be influenced by various factors, which include:

• Central Bank of the Russian Federation - increase, decrease.
• Credit risks.
• Estimated value for gas and oil in relation to international politics.
• Financial market procedures
• Unforeseen situations that affect the economy: wars, natural disasters, catastrophes, etc.

The factors considered can increase or decrease changes in economic instruments. For example, in 2014, the Central Bank increased the rate to 17%.

After such operations, changes in the ruble exchange rate increased. However, to date, the country has already achieved stability and reduced fluctuations in the chart.

Market volatility

Economy in modern world is a system of markets in which operations for the sale and purchase of goods are carried out:

• Commodity: clothing, appliances, Natural resources etc.
• Securities
• Currency

Trades are conducted on exchanges between two interested parties represented by brokers or in another way. It would be difficult to analyze economic condition states, if all the changes were not taken into account.

A low indicator means that the market is stable in the economic sphere. Its increase increases the risks of a crisis and suggests that it is necessary to take measures to equalize the indicators.

Market volatility shows changes in pricing policy in the market under consideration for a certain period.

• January - February - high rate
• March is low

It follows from this that during January-February there were constant changes in the financial side of the economy, however, by March it was possible to achieve stability and a decrease in indicators.

The consequences of volatility

High volatility has a number of consequences. Often, such consequences are negative not only on the market of the financial instrument used, but also on the entire financial market.

One bounce in a certain market area causes a domino effect, as a result of which the volume of international trade falls.

When price policy changes very quickly, then consumers quickly reduce their costs, thereby reducing the income of the enterprise. Such leaps entail the emergence of a crisis, poverty. Many companies rely on risk management to mitigate risk.

Volatility is constantly changing, depending on the demand for a particular financial instrument. If there are any changes in demand, then the indicators of variability decrease or increase, respectively.

Volatility

The word "volatility" comes from the English language "volatility", which can be translated as "volatility", which can be understood as a financial statistical indicator that characterizes the trend of volatility in exchange rates, prices, demand, stock prices. The lower the volatility, the more stable the currency of a particular country. Conversely, the more the exchange rate fluctuates, the greater the volatility.
This means that when you hear on TV again that the ruble exchange rate is volatile, it means that it fluctuates, and it is not known in which direction it will fluctuate. In general, volatility, in fact, is just another foreign word that was borrowed because of its beautiful sound and mysterious semantic load. The meaning of this borrowing is not entirely clear, most likely this is done in order to mislead ordinary citizens and make them spend too much time on the Internet in search of the right answer. And our site will answer you this and most of your burning questions.

We already know that the word volatility got into our language from the English speech "volatility", but it got there from French"volatile", and already into it it was borrowed from the Latin word "volatilis", which translates as "fast", "volatile", "evaporating".

Volatility is a study of how prices have changed in the market over a certain period of time.

Synonyms for "volatility"

• variability
• variability
• variability
• impermanence

Volatility theory

It was invented by the 2003 Nobel laureate in economics, American economist Robert Eng. Back in 1982, the American Eng created a method using which it was possible to predict trends of change with a high degree of probability. exchange rate, consumer prices, interest rates, changes in GDP and many other economic markers not only for the near future, but even for years to come. When the Nobel Prize was awarded, Eng was recognized for not only the market and financial analysts but also for scientists who use it to assess the risks of investments and when assessing property.

Historical volatility... It characterizes the past changes in the index, profitability, prices, etc. and shows the degree of dispersion of these values ​​around their average

Volatility changes regularly, but each index or stock is characterized by an average, " normal"the level of volatility around which fluctuations arise. In order to identify the optimal level of volatility for financial instruments, it is required to compare historical volatilities for different time periods

Expected volatility... Shows the calculated value of the price, exchange rate, etc. The decisive factors of the calculation are: political stability; historical volatility; the development of market relations; market liquidity; economic activity

Any economic or political world events have an indirect impact on the markets and, accordingly, affect the growth of volatility. On days when a significant event is expected, the upcoming volatility is significantly reduced than in the periods after the consecration of decisions of a global and national scale.

Historical expected volatility... This is a registration of forecasts of volatility that is expected in the future. In fact, it shows not the volatility itself, as such, but the professionalism of the analyst and his forecast quality.

Volatility is a useful and at the same time most complex mechanism market economy, but it is most suitable for the so-called " developed countries"or as they are also called" the countries of the big seven debtors ", the stability of economic activity of which is less dependent on external factors, and since everything on our tiny planet, willingly or unwillingly, depends on each other, the theory of volatility remains only a toy for analysts and which has absolutely no effect on the real economic situation

Forex volatility video

1.
2.
3.
4.
5.
6.

Greetings, you are a novice trader! In touch! Today I want to talk about what volatility is, how to define it, and why it is needed at all. For better understanding topics we will consider a couple simple examples low and high volatility. One thing I can say - it won't be boring. Don't even hope. First of all, let's look at the definition of volatility.

Market volatility - what is it and what does it mean?
Why is it changing?

In simple words:

Market volatility Is the change in value for various assets.
Currency volatility is the price changea specific currency in relation to other currencies.
Portfolio volatilityis the movement of the general assessed value portfolio, which includes the total value of all assets in the portfolio.
Exchange rate volatility (currencies or stocks)- this is the movement of the price of an asset or the rate of any of the currency pairs.
Ruble volatilityis the movement of the ruble exchange rate in a certain price range.

Everyone knows that in order to make a profit in any of the financial markets, the price of an asset must change. If we buy an asset at a certain price, then we expect that its price will increase over time, and we will successfully sell it, taking the difference for ourselves. And now, if market volatility did not exist, the price would remain at the same level, which means that all trading in binary options, currency pairs and other instruments would lose all meaning.

Do you think high volatility is good or bad?
On the one hand, the higher the volatility, the wider the range the price will change, and we will be able to earn more. But, at the same time, the price of the asset can go in the opposite direction, which will significantly increase our chances of getting a loss. In short, you should be careful with volatility. In the hands of an inexperienced trader who is poorly guided by the peculiarities of the trading instruments he uses, assets with high volatility can become a “time bomb”.

So now? Choosing assets with low volatility? I would not advise doing this, because you will waste your time in vain, and, in best case, you will earn "small change".

See how best to proceed: we place a bet on an asset, the price of which changes dynamically in a wide range, study all its features, start trading in small lots, and gradually increase volumes. And most importantly - no impulsiveness, the market punishes for this, and cruelly at that. And do not forget to pre-pump your financial literacy by examining the article "". This is a Must read article, so don't skip it.

Now let's understand what volatility can be. Everything is simple here - it can be either low or high. There is no third.

In order to better imagine what kind of volatility it is, novice traders are recommended to draw an analogy with the sea. Imagine that you are sitting on the shore and looking at the sea.

You are captivated by the beauty of the small waves that barely touch your feet. But then in an instant the wind rose, and one large wave began to replace another, while the height of the waves significantly exceeded the level that you saw a couple of minutes ago. It is by the waves that each person can determine how calm the sea is or not. In the same way, a trader, by the level of volatility, determines what situation is developing in the market, whether it is worth trading this or that trading instrument, or one should refrain from trading.

It is important to know and understand the following: the stronger the deviation of the asset price, the higher its volatility. With low volatility in the market, there are no sharp price changes in one direction or another, and the trader's profit potential remains at a low level, as well as his risks. Do I need to enter the market in this situation? It is possible, but not necessary. If you value your time, it is better to use it for the benefit of your body and soul - take a break for a few minutes, or maybe hours, take a walk in the park, breathe in the fresh air. So you will kill two birds with one stone - and you will not waste time, and you will rest a little. Traders are people too, and from constant sitting in front of the monitor, concentration is lost, which often results in making wrong decisions. In addition, you can always install a trading robot, you can read more about it in the article:. Trading robot helps to keep making a profit regardless of market volatility, while doing what you love yourself.

Does a trader need price volatility, or is it ...?

The answer to this question is obvious - yes, it is really necessary. Let's look at why it is so important to take price volatility into account, using the Forex market as an example. Each trade has its own parameters, which are predefined. These include: the stop order level, the opening price and the closing price. Before entering the market, it is necessary to determine the volume of the trading lot and the level of placing a stop order.

The use of a fixed stop in points at a high level of volatility in the market can lead to the fact that it will simply be carried away, and the presence of noise in the market will constantly lead you astray. To solve this problem, a stop order should be used, placing it at a distance of only 1% of the current price. Trailing stop will follow market price... If it falls, he will also follow it, and if it rises, the stop order will also rise.

Would you like to know more about stop orders? Read our article by my colleague Viktor Samoilov "". In it you will find all the information you are interested in.

However, in the binary options market, everything is much simpler, because traders do not place stop orders. Accordingly, there is no need to calculate volatility? It may seem so at first glance, but it is the analysis of market volatility that allows us to determine who dominates the market - bulls or bears. Depends on, where will go the price of a particular asset, and without this knowledge it is impossible to make the right trading decision. Rather, you can always "poke your finger in the sky", but it is far from the fact that you will always be lucky. Contrary to popular belief, both Forex trading and binary options trading are not analogous to casinos. Here you need to THINK, not just bet on “red” or “black”.

The volatility in the market determines the trader's decision to skip a trade or enter it. Once again: Low volatility - the asset price practically does not change - we do not enter the market, but simply continue to monitor the situation. High volatility - a rapid change in the price of an asset and high chances of making a profit - we open a deal.

Volatility what it is: a few simple ways to determine!

Very often, traders are so keen on analyzing the price change of an asset that they do not notice how they begin to reinvent the wheel and make very simple things complicated.

The ATR indicator shows the volatility of pairs in history and at the moment, and Heiken Ashi will allow you to understand how the price moved by showing its average value. Both indicators are available in trading platform and are completely free.

When working with currency pairs, determining volatility will take you no more than 2 seconds! It will be enough just to look at the following table, choosing the currency pair and the session during which you intend to trade.

This table shows the volatility indicators of various currency pairs during specific trading sessions. If you work with the EUR / USD pair, you would be better off trading during the European and American sessions. As you can see, volatility is very simple. It is not as difficult to define as it seems at first glance.

Many traders ask questions: “Which of the trading sessions is better to trade?”, “How much to start trading?”, “Which strategy to use?”. It is quite difficult to answer these questions unequivocally, since each situation on the market is individual, as are the individual characteristics of each trader. If you still have not found the answers to the listed questions, there is great news for you. We have prepared for you the most valuable information for beginners, read it in the article: Now the experience of professionals is available to you completely free of charge.

but currency pairs are not the most volatile trading instruments for the trader, since they lose to two other instruments - silver and gold. Due to the high dynamics of the prices of these instruments, the trader gets a chance to earn even more profits than when trading Forex. The cost of metals is growing regularly, and their liquidity remains high. Suffice it to say that the price of gold can change by 1,500 or more points per week.

Don't believe me? Then watch how the price of gold has changed over the past 12 years!

Examples of high and low volatility!

As we noted earlier, there are two types of market volatility - high and low. In order to understand how rational it is to enter the market, and what amount of profit can be expected, it is important for a trader to understand the degree of market volatility.

We have already listed two popular indicators that will help you determine market volatility, but there is another way, which is much easier and more reliable - just look at the price movement chart.

Supporters technical analysis This is exactly what they do, because one of the TA postulates says that the price takes into account everything, and therefore all factors have already been taken into account and found their reflection on the chart.

It is important to pay attention to how many pips the price has passed over a certain period of time.

An example of high volatility is the chart of Gazprom shares, which shows how in just 2 days the price moved sharply up and down:

Now let's pay attention to another chart, which shows changes in the price of shares of the company “Magnit”.

For a whole week, the price of the asset remained practically unchanged.

Here's another example of low volatility:

From the above chart, we can conclude that there are no sharp price changes. The current situation does not promise a significant profit for the trader.

If you look at the chart and notice how the price moves in a wide range up and down, you will immediately understand that the profit potential is high, which means that it is time to make deals.

Pay attention to the following graph:

When trading on news, volatility in economic calendar is usually indicated by bull heads.

One head suggests that the news will not have a significant impact on the market, two heads indicate that the impact of the news can either lead to sharp movements in the market or not have a significant impact on it, and three bullish heads indicate particularly important news , which with a high degree of probability will lead to sharp jumps in the price of the asset. It is on such news that it is recommended to trade on the binary options market.

How to capitalize on market volatility?

Can you make money on sharp price movements?

Let's be honest - not only POSSIBLE, but also NEEDED!

You can make money on a calm market, the price of which moves in a narrow range, but even earning from 20 to 40 trades does not compare in magnitude with the profit that you can get by concluding only one trade deal in a highly volatile market.
Watch this video about successful strategy trade:

You have to make a choice!

In order to make money on the price movement, you should adhere to several rules:

1. Work only with those trading instruments, the features of which are known to you. How many experienced Forex traders have lost all their capital by betting on exotic currencies which they have never traded in their lives. The same rule holds true when trading binary options.
2. Do not enter trades during a period of low volatility. Even if you can make money, it won't be worth the candle. Trade only during periods when there is an active movement in the price of a trading instrument.
3. You don't need to know everything! Do not overload yourself with unnecessary information and do not take into account news that will not have any impact on the market.

Understand this - you can make great money on volatility. When trading binary options, you can take a profit of 500 and 1000%, this is not something fantastic and difficult to achieve.

To the end!

If you want to make money on binary options, you just need to know about profitable strategies bringing in more than 300% of the profit.

You can start with the simplest strategy. It is discussed in detail in the article:. For trading on which a deposit of 200-500 dollars is enough. It is really easy to use, but its correct use you can expect to make excellent profits.

If you are a supporter of fundamental analysis and do not miss a single important news, you will surely like the profitable fundamental strategy for beginners, which is discussed in the article: thanks to which you can always predict with high accuracy in which direction the price in the market will go, and then accept correct trading decision and make good money on it.

Summing up, we can say with confidence that volatility is a fundamental factor that enables us to make money, and how you use it depends on you. In a word, never stop there. Choose a strategy that suits your trading method and style and use it in your work. And remember - your success will be financial markets 99% depends on the decisions you make, and only 1% depends on your luck.