AI Hub 31 December 2023 What Are the Techniques for Gauging Volatility in the Forex Market? Volatility is one of the most important factors to consider when trading in the foreign exchange (forex) market. As with any other asset class, volatility can have a significant impact on how much money you make or lose on a trade. Knowing how to gauge and manage volatility is an essential skill for any forex trader. In this article, we’ll discuss some of the techniques used to measure and manage volatility in the forex market. What Is Volatility? Before we dive into the techniques used to measure and manage volatility, let’s take a moment to define what exactly volatility is. Simply put, volatility refers to how much an asset’s price fluctuates over time. It is measured by calculating the standard deviation of returns over a given period (usually 20 days)....