Volatility contraction leads to volatility expansion.

[Shireen]

This is a fact of the markets that is hardly spoken about…You’re probably wondering: “What does it mean?”
This means volatility in the market is never constant. The markets move from a period of low volatility to high volatility, and vice versa.

 

[Electric Rainbow]

Volatility is forex trader’s best friend. Traders profit from the fluctuations in the prices. Especially for scalpers a market without sufficient volatility will lack direction and vital price movements.

 

[Nosero]

Interesting topic. Like in every other aspect of life, also financial markets are operating in a waves. After a time of low volatility usually comes time of high volatility. I see it as a quite normal way of market behaviour

 

[Nihuginn]

Well, of course, like everything else in the market, volatility has a certain cyclicality, but still it depends a lot on news and some speculation...

 

[Deanna]

Well, low volatility is quiet work, high volatility is active trading.
Everyone can choose what he likes.

 

[FXOpen Trader]

Well, low volatility is quiet work, high volatility is active trading.
Everyone can choose what he likes.

As the New Year holidays are going on so the volatility in the markets is low. Once the normal operating hours of the Forex will start we can see the liquidity back into the markets.

 

[Shing1985]

Extremely volatile currencies usually need higher standards for brokerage margin, which is merited to insulate from excessive financial losses. These margin requirements provide a sense of assurance to forex traders from detrimental impacts of wildly unstable price swings.

 

[RainbowRain]

Strong volatility is observed mainly when important fundamental news is released. And here you can both make a quick profit and suffer significant losses. Therefore, it is important to always monitor the economic calendar and make informed decisions whether to trade at this time.

 

[Aaron_0]

Market volatility fluctuates between periods of low and high activity. Understanding these shifts helps traders adjust strategies, manage risk, and capitalize on opportunities during both stable and volatile market conditions.

 

[RainbowRain]

Well, low volatility is quiet work, high volatility is active trading.
Everyone can choose what he likes.

I would say that you need to choose based on your experience and skills, because if, for example, a beginner wants to trade on a highly volatile market or highly volatile pairs, then his chances of success will be very small.