Page 1 of 2
Most Volatile Currency Pairs 2021
Posted: Tue Mar 02, 2021 10:28 pm
by Jimmy
Most Volatile Forex Pairs 2021
- Most Volatile Currency Pair in 2021 is GBP/NZD
- Least Most Volatile Currency pair in 2021 is CAD/CHF
In the chart below, we display the least to most Volatile Forex Currency Pairs for 2021.
Re: Most Volatile Currency Pairs 2021
Posted: Wed Mar 03, 2021 4:06 am
by mlawson71
Huh, why GBP/NZD of all currency pairs?
Re: Most Volatile Currency Pairs 2021
Posted: Wed Mar 03, 2021 7:28 pm
by moey_dw
Re: Most Volatile Currency Pairs 2021
Posted: Thu Mar 04, 2021 4:06 am
by mlawson71
Yes, but why? Can someone explain the fundamentals behind that to me?
Re: Most Volatile Currency Pairs 2021
Posted: Thu Mar 04, 2021 9:33 am
by wojtek
It depends mainly on volatility of GBPUSD and NZDUSD,
as the trading volume of GBPNZD itself is only 0.64% of all 28 currency pairs
(majors and crosses of 8 currencies).
Re: Most Volatile Currency Pairs 2021
Posted: Thu Mar 04, 2021 3:27 pm
by moey_dw
wojtek wrote: Thu Mar 04, 2021 9:33 am
It depends mainly on volatility of GBPUSD and NZDUSD,
as the trading volume of GBPNZD itself is only 0.64% of all 28 currency pairs
(majors and crosses of 8 currencies).
agree............ gbpnzd is so volitile and i have been wipe out by this pair many time when i was start trading years ago lol cos inexperience & trading small timeframe destroy ur account i blow like $10k usd at least............... doh
gbpjpy is volatile to those who trade a major pairs but year on year gbpnzd is king of movements........... pip moves like 200-300pip per day!!!! arghh
Re: Most Volatile Currency Pairs 2021
Posted: Thu Mar 04, 2021 3:52 pm
by Jimmy
mlawson71 wrote: Thu Mar 04, 2021 4:06 am
Yes, but why? Can someone explain the fundamentals behind that to me?
In short, GBPNZD is highly volatile due to low liquidity.
These highly volatile "cross" pairs should never be traded by inexperienced traders. At times you will see 300-500 pip moves in a day with GBPNZD with sudden bursts of 50 to 100pip moves that almost appear out of nowhere so it's safe to say, you can't trade these pairs on the lower timeframes with simple technical analysis.
If you want to trade volatile cross pairs, the Daily chart and smaller position sizes is where you will win and preserve your capital.
Remember:
- Low liquidity = More Volatility
- High liquidity = Less Volatility
Hope this helps!
Re: Most Volatile Currency Pairs 2021
Posted: Thu Mar 04, 2021 4:26 pm
by wojtek
Maybe, some good opportunities for triangular arbitrage could take place
for GBPNZD and (GBPUSD, NZDUSD) or (EURGBP, EURNZD) or (GBPJPY, NZDJPY), etc.
Re: Most Volatile Currency Pairs 2021
Posted: Mon Aug 16, 2021 5:16 pm
by 太虚一毫
Volatility is important. If there are indicators to list this chart in due course, that would be great!
Re: Most Volatile Currency Pairs 2021
Posted: Mon Aug 30, 2021 1:35 pm
by 太虚一毫
Jimmy wrote: Thu Mar 04, 2021 3:52 pm
In short, GBPNZD is highly volatile due to low liquidity.
These highly volatile "cross" pairs should never be traded by inexperienced traders. At times you will see 300-500 pip moves in a day with GBPNZD with sudden bursts of 50 to 100pip moves that almost appear out of nowhere so it's safe to say, you can't trade these pairs on the lower timeframes with simple technical analysis.
If you want to trade volatile cross pairs, the Daily chart and smaller position sizes is where you will win and preserve your capital.
Remember:
- Low liquidity = More Volatility
- High liquidity = Less Volatility
Hope this helps!
It is the teacher's definition of volatility.
In my impression, the British pound is the most volatile currency, which is of course smaller than gold and oil. It is more volatile than other currencies. So, technical analysis, for the pound, the parameters seem to be slightly different.