Volatility
How much and how fast a price swings. High volatility means big, rapid moves; low volatility means calm, small ones.
Volatility measures the size of a market's mood swings. A pair that drifts 30 pips a day is calm. One that thrashes 150 pips is volatile.
Volatility is opportunity and danger welded together. Bigger moves mean bigger potential profits and bigger potential losses. When volatility jumps, many traders shrink their lot size and widen their stops so a normal swing does not knock them out.
Using the same position size in wild markets as in quiet ones, so risk silently doubles or triples.
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