When choosing a currency pair to trade, the trader should pay attention to the volatility of the pair. In this case the trader interested in the maximum price movement from minimum to maximum, and the frequency of such changes. This makes it possible to assess the possibility of trade with this currency pair. The fact that different currency pairs have different volatility. In some couples it is high, the other low. From logical considerations and mathematical calculations, it is clear that trade currency pairs with low volatility are not very profitable.
Highest volatility are currency pairs with cross-rates, then there are a couple that are not directly linked to the U.S. dollar. The most popular among traders are currency pairs such that any currency (other than the U.S. dollar) is listed on the Swiss franc or the Japanese yen. Even higher intraday fluctuations may have currency pairs with exotic currencies. Exotic Currency - the currency of the emerging economies. Both cases should be noted that the spread of these currency pairs will be higher. This is not a whim of brokers who decided, once a trader has a chance to earn more, you need to take from it is also greater. The thing is that the quotes in this pair are not held directly, and all through the same U.S. dollar. For example, you shop for the currency pair EUR / CHF, you are actually making a two currency exchange transaction, first change euros into U.S. dollars and then dollars for Swiss francs. In addition, transactions in cross-currency exchange rates and trade exotic currency trading requires a good experience and the large store of knowledge about the behavior of these currencies.
Currency pairs with direct quotations (which have in their composition dollar) have lower volatility, but are more predictable. Hence the high popularity of these currency pairs from traders. However, each trader is faced with the work on the various currency pairs, for example, when they test and work out your own trading system. When working with different pairs, it may show different results. More information about the volatility of currency pairs over various time periods are presented on the official statistical website: ratesfx_com / volatility. Please note that the volatility is represented as a percentage of the course.