Basics

Volatility

Volatility is how much and how quickly a price moves. Higher volatility means larger price swings in both directions, which raises the size of possible gains and losses.

Also called: price volatility, market volatility

Hypothetical example

Hypothetically, a pair that usually moves about 50 pips a day moves 150 pips on the day of a major data release. A stop loss 30 pips away is much more likely to be reached that day.

Used in these guides

Markets & hours8 min read
Forex market hours in Mexico, Colombia, Chile, Peru and Argentina
When the Sydney, Tokyo, London and New York sessions open and close in your local time, and how daylight saving time moves them.
Markets & hours8 min read
How to read an economic calendar
What each column and impact rating means, when the main releases come out in your time zone, and what can happen around them.
Markets & hours8 min read
Daylight saving time and market hours
Who changes their clocks and when in 2026–2027, what the mismatch weeks do to the London–New York overlap, and what to check in your platform.

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Risk Warning: CFDs are complex instruments and come with a high risk of losing money.

Volatility

Hypothetical example

Related terms

Used in these guides

Forex market hours in Mexico, Colombia, Chile, Peru and Argentina

How to read an economic calendar

Daylight saving time and market hours