Before setting a strategy and line of action for starting a career at Forex market, a trader should keep the factor of volatility of Forex market in his mind. It is the basic thing in this huge market, if a trader choose strategy without taking volatility into account. He can face many difficulties and failures in result of negligence of this factor.
Forex market is available in every corner of Earth. Dealers, investors, traders and brokers from all over this world can communicate with each other and can earn profit through successful trades between them.
As Forex market is volatile and can change its direction any time due to change in outside environment of market in any country. Better communication can help Forex traders from all over the world to stay updated with latest Forex news.
Hugest Forex market in the world in owned by London and that’s why official time of Forex market in Greenwich. So this point should be kept in mind and trades should be done according to suitable local time of a country with which you are going to deal in order to get better trades and more profits. Some countries fixed daily business hours for activities in Forex market so make sure you have keep an eye on timing also. We can call it as volatility of time zones.
Forex volatility takes place any time at any place in any currency. Currency of any country can rise up and down according to daily business activities of country. Sometimes currencies value changes in daily hours when the country business deals are very active. Currency value changes because it is response of Forex market to the business activities of country. So volatility factor should be taken into account by Forex traders.
The Forex volatility in any country is highly influenced by that country. Specially economic and political position has a more effect on value of currency. When economy of country grows it bring positive change in value of currency as well. Political stability is very important factor for economic growth. When a country is politically stable, foreign as well as national investors invest in country market and in result economy of country grows.
We take example of London session which is the hugest Forex market of the world. Forex volatility in London Forex market is more as compared to other FX markets in the rest of the countries. Approximately four quarter of daily turnover in the Forex market pass the London session.
More than thirty percent of daily turnover of the Forex market pass the London session.