Volatility describes how large and how fast price moves tend to be, without saying anything about direction. Highly volatile markets produce bigger pip ranges in the same period, which affects sensible stop distance, position size and the spread you are charged. Two pairs can need completely different sizing at the same account balance purely because their volatility differs.
Forex glossary
Volatility
Related term
ATR (Average True Range)
The average true range measures, in pips, how much a market has typically moved per period recently, taking gaps into account. It is commonly used to set stop d…
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