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Market Volatility

Volatility is a term used to statistically describe the variation in trading prices. The higher the number, the higher the market volatility is. Alternatively, the lower the number, the lower volatility is.
For example, if EURUSD moves from 1.1200 to 1.1250, this means a volatility of 50 pips or 0.44%. Alternatively, if GBPUSD moves from 1.3800 to 1.3900, this represents a volatility of 100 pips or 0.72%. Looking at both pairs, you can now compare volatility and say which currency is more volatile during the inspected time frame. Important to note that pips are not always a suitable measure for volatility when comparing pairs with high variation in pip value.
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