Among your fellow trading community, you might come across some nicknames or slang for trading. You need to prepare yourself so you know what your peers are talking about, and for your own personal trading education, too. You might hear something such as, “I’m going short 5 lots in cable, what are you thinking?” Would you rather have no idea what that means, or would you want to know what your peer is talking about?
Currency markets are prone to a range of factors which affect volatility and many traders look to adjust their strategies to gain on most volatile currency pairs. Volatility is typically measured using the standard exchange of currency and gives traders an expectation of how much a currency can detour from its current price over a certain period. The higher the volatility of the currency, the higher the risk will be.