To become acquainted with the concept, the average daily fluctuation of the EUR/USD is about 100 pips a day. On more turbulent days the fluctuation reaches 200 – 300 pips. On calmer days the fluctuation reaches 50 – 60 pips.
If the exchange rate is currently 1.5220 and I want to announce tommorrow that it rose by one percent, it would be represented by a rise of 152 pips. So, if we said that the daily fluctuation of the EUR/USD is about 100 pips a day, by what percent does the EUR/USD fluctuate on average? About 0.7% – 0.8% and in more turbulent period, it is 2% at most.
So, From this point of view, we can learn of a new and important advantage that exists in the forex market – This market is stable, and referring mainly to the major currencies: Euro, USD, Pound, Yen, and Swiss Franc. This is a stable market, with exchange rate fluctuations of half a percent up to one and a half percent throughout the day. There is no possibility that you will trade a currency and loss 10% – 15% in one day.
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