Forex trading education - Average Daily Fluctuation
To become acquainted with the concept, the average daily fluctuation of the EUR/USD is about 100 pips a day. on more turbulent days the fluctuation reaches 200-300 pips, on calmer days the fluctuation reaches 50-60 pips.
And in terms of percentage?
If the exchange rate is currently 1.5520 and i want to announce tomorrow that it rose by one percent, it would be represented by a rise of 152 pips.
So if we said that the daily fluctuation of the EUR/USD is about 100 pips a day, by what percent does the EUR/USD fluctuate on average? About 0.7%-0.8%, and in more turbulent periods - 2% at most.
From this we can learn of a new important advantage that exists in the Forex market - this market is stable, and i'm referring mainly to the major currencies: Euro, USD, Pound, Yen and Swiss Franc.
This is a stable market, with exchange rate fluctuations of half a percent up to one and a half percent throughout the day. There is no possibility that you will trade a major currency and lose 10%-15% in one day.
Whats next?
* Value of pips
Or go back to the education index
And in terms of percentage?
If the exchange rate is currently 1.5520 and i want to announce tomorrow that it rose by one percent, it would be represented by a rise of 152 pips.
So if we said that the daily fluctuation of the EUR/USD is about 100 pips a day, by what percent does the EUR/USD fluctuate on average? About 0.7%-0.8%, and in more turbulent periods - 2% at most.
From this we can learn of a new important advantage that exists in the Forex market - this market is stable, and i'm referring mainly to the major currencies: Euro, USD, Pound, Yen and Swiss Franc.
This is a stable market, with exchange rate fluctuations of half a percent up to one and a half percent throughout the day. There is no possibility that you will trade a major currency and lose 10%-15% in one day.
Whats next?
* Value of pips
Or go back to the education index
