If the securities, certain goods, various resources can be sold and purchased very quickly, while their cost remains practically at the same level, then they have this property, like liquidity. The highest degree of liquidity is inherent in cash. The Forex market demonstrates its level of liquidity in this indicator, as trading volume. The more transactions are associated with a particular asset, the more liquid it is. The highest degree of liquidity is inherent in the foreign exchange market, on which Forex trading is carried out daily, which turns into about three trillion US dollars, that more, than the turnover of the world stock market several times. Therefore, the Forex market has the highest degree of liquidity..
The liquidity of a currency pair is determined on the exchange by the presence of transactions, related, that is, if there is a buyer, who is trying to purchase a certain amount of this currency, no matter how much volume, even if it is small, the main thing is that transactions are made. Therefore, the most liquid are pairs., in which both currencies are popular among traders, they sell much faster, than those, in which at least one of the currencies is "exotic".
There are cross-rates in the Forex market, which have a low level of liquidity, по той причине, that they are first compared to the U.S. dollar.
The most profitable and effective will be the trading strategy of activities in the Forex market, if such a factor was necessarily taken into account in its development, as volatility. It has a great impact on the success of transactions.
Volatility accounting means the use of fluctuations of certain currency pairs in the development of forecasts. At any time, this information is relevant for all traders - as for a scalper, так и для долгосрочного инвестора. Therefore, to carry out successful transactions with foreign exchange operations, it is not recommended to use a large number of currency pairs., two or three will be enough. If there are a lot of currency pairs, then to the trader, especially for a beginner, it will be very difficult to feel the fluctuation of each of them and take into account all the features of their behavior in the market.
Becoming a member of the Forex market, you will probably have to hear such expressions - "the average daily volatility of the euro-dollar currency pair", "The pound has a lower volatility level, than the euro" etc.. That is, volatility is a range of prices over a period of time., which are then compared and accounted for by traders.
