NOTICIAS FOREX

Forex volatility is one of the most important concepts traders must understand when navigating the foreign exchange market. In simple terms, it describes how much and how quickly currency prices move, which directly affects trading risk, opportunity, and strategy selection. Markets can shift from calm to aggressive in minutes, and volatility is the mechanism behind those changes. This matters because volatility influences nearly every trading decision, from position size and stop-loss placement to time frame and strategy choice. Traders who understand forex volatility are better equipped to adapt to changing market conditions rather than being caught off guard by sudden price swings. As a result, volatility acts as a framework for aligning trading style with real-world market behaviour. What Is Volatility in Forex? Forex volatility is the degree and speed of price fluctuations in currency pairs over a given period. The term “forex volatility” refers to how widely prices move rather than the direction of those movements. In forex trading , volatility measures the intensity of price action, not whether a market is trending up or down. The core principle is that higher volatility produces larger and faster price swings, while lower volatility results in more stable and predictable movement. This matters because volatility directly impacts risk exposure, trading costs, and execution quality. For this reason, traders must adjust strategy, position size, and expectations as volatility conditions change. Key characteristics of forex volatility: Measures price movement size, not trend direction Expands during news events and active trading sessions Influences spreads, slippage, and stop-loss placement Varies significantly between currency pairs In practice, a highly volatile pair may move hundreds of pips in a short time, while a low-volatility pair may trade within a narrow range for days. As a result, understanding volatility helps traders choose suitable markets and manage risk more effectively. Why Is Forex Volatility Important for Traders? Forex volatility is important because it directly influences risk, opportunity, and trade management. In simple terms, higher volatility means larger and faster price movements, while lower volatility results in slower, more stable markets. This matters because the size of price swings determines potential profit, potential loss, and how quickly trades can play out. The key reason volatility matters is that it helps traders align their trading style and risk tolerance with current market conditions. For example, short-term traders often seek volatile markets for quick price moves, while longer-term traders may prefer moderate volatility for more controlled setups. As a result, understanding forex volatility allows traders to make more informed decisions about position size, stop-loss placement, and overall strategy selection. Read more：10 Forex risk management tips every trader should know What Causes Forex Volatility? Forex volatility is driven by changes in market expectations and shifts in supply and demand for currencies. In simple terms, volatility increases when new information forces traders to rapidly reprice a currency, leading to sharper and faster price movements. This matters because sudden changes in volatility can alter trading conditions almost instantly. The core principle is that volatility rises when uncertainty increases or when market participants react differently to new information. For this reason, the forex market can experience sharp price swings even without a clear long-term trend. The following sections introduce the key factors that influence forex volatility and explain how they affect market behaviour in practice. Economic Indicators Economic indicators are official data releases that reflect a country’s economic health and directly influence the value of its currency. In forex trading , indicators such as GDP growth, employment data, and inflation figures help traders assess whether an economy is strengthening or weakening. This matters because stronger economic data often supports a currency, while weaker data can trigger selling pressure. The key driver of forex volatility is not the data itself, but the difference between actual results and market expectations. When economic data significantly beats or misses forecasts, traders are forced to adjust positions quickly, leading to sharp price movements. As a result, volatility tends to increase dramatically during the release of high-impact economic indicators, particularly when markets are positioned in the wrong direction. Political Instability Political instability can have a powerful impact on forex volatility by undermining investor confidence and disrupting capital flows. In simple terms, uncertainty around governments, elections, or policy direction makes investors more cautious, which often leads to rapid shifts in currency demand. This matters because currencies are highly sensitive to changes in perceived political risk. The core principle is that political uncertainty tends to increase risk-averse behaviour, pushing traders toward so-called safe-haven currencies such as the US dollar, Swiss franc, or Japanese yen. As a result, markets can experience sudden spikes in volatility as funds move quickly between currencies in response to political developments, even when economic data remains unchanged. Market Structure Market structure refers to how the forex market operates at a micro level and how trades are executed and absorbed by liquidity. In forex trading , market structure influences short-term price movements rather than long-term fundamental trends. This matters because even in stable economic conditions, price action can become highly volatile over short periods. The key drivers within market structure include large institutional orders, algorithmic trading, and clusters of stop-loss orders. When these elements interact, they can trigger rapid price spikes or sudden reversals as liquidity is temporarily exhausted. As a result, sharp movements can occur within minutes, creating short-lived volatility that catches unprepared traders off guard. Market Sentiment Market sentiment reflects the overall mood of traders and investors toward risk, often described as risk-on or risk-off behaviour. In simple terms, sentiment shows whether market participants are willing to take risk or prefer to protect capital. This matters because shifts in sentiment can drive price movements even without fresh economic data. The core principle is that currencies move based on collective positioning and expectations, not just fundamentals. When sentiment changes suddenly, such as during periods of fear or optimism, traders may rapidly adjust positions, increasing volatility across multiple currency pairs. As a result, market sentiment can become a major driver of forex volatility during quiet news periods. Read more：What Is Market Sentiment? Definition, Indicators and Strategies Seasonality Seasonality refers to time-related factors that influence trading activity and liquidity in the forex market. In forex trading , certain periods such as year-end, quarter-end, holidays, or specific trading sessions can significantly affect volatility. This matters because reduced participation from banks and institutions can change how prices behave. The key reason seasonality affects volatility is liquidity. During quieter periods, fewer orders are available to absorb trades, meaning even modest buying or selling can cause larger price movements. As a result, reduced liquidity can amplify volatility, leading to sharper swings and less predictable price action. Read more：Best time to trade forex: When to enter the market during the day Read more：What is liquidity in Forex and how is it measured Unexpected Events Unexpected events are sudden developments that disrupt existing market expectations and force traders to reprice currencies rapidly. In simple terms, these events introduce uncertainty, which often leads to sharp and disorderly price movements. This matters because markets struggle to price risk accurately when outcomes are unclear. The core principle is that surprise events, such as financial crises, pandemics, or sudden policy announcements, remove the ability to plan ahead. As a result, forex volatility typically increases sharply, spreads may widen, and price action can become erratic as traders react defensively. Read more：What Is the Spread in Forex? Learn to Calculate and Trade It Read more：Forex News Monetary Policies Monetary policy plays a central role in the forex market because it directly influences interest rates, liquidity, and currency demand. In forex trading , decisions made by central banks, such as adjusting interest rates, changing asset purchase programmes, or altering forward guidance, can significantly impact currency values. This matters because even small policy shifts can trigger large repricing across the market. The key reason monetary policy affects forex volatility is expectation management. When central banks signal a change in policy stance or surprise markets with unexpected decisions, traders must rapidly adjust positions. As a result, announcements from central banks often coincide with sharp increases in forex volatility, particularly when guidance differs from what the market had priced in. How Is Forex Volatility Measured? Forex volatility is measured using statistical tools and technical indicators that quantify how much price fluctuates over time. In simple terms, these measurements help traders understand whether the market is calm, expanding, or experiencing extreme price movement. This matters because volatility levels influence strategy choice, stop placement, and position sizing. The core principle is that volatility is not guessed, it is measured using objective data. For this reason, traders rely on a range of indicators to assess current and historical price movement, each offering a slightly different perspective on market conditions. The following indicators are commonly used to measure forex volatility in practice. Bollinger Bands Bollinger Bands are a volatility-based technical indicator that measures how far price deviates from its average. In forex trading , Bollinger Bands consist of a middle band, typically a 20-period simple moving average (SMA), and two outer bands plotted a set number of standard deviations above and below it. This matters because the width of the bands expands and contracts with changes in volatility. The core principle is that wider bands indicate higher volatility, while narrower bands suggest lower volatility and consolidation. The bands are calculated by adding and subtracting one or two standard deviations from the moving average. For example, if a 20-period SMA is 1.1000 and the standard deviation is 0.0050, the upper band would be around 1.1050 and the lower band around 1.0950. As a result, traders use Bollinger Bands to identify periods of expanding volatility and potential breakout conditions. Average True Range (ATR) The Average True Range (ATR) is a volatility indicator that measures the average size of price movements over a specified period. In forex trading , ATR does not indicate direction; instead, it shows how much a currency pair typically moves. This matters because understanding average movement helps traders set realistic stop-loss and take-profit levels. The core principle of ATR is the concept of true range, which considers gaps and intraday price movement. It is calculated by taking the greatest of the current high minus low, the absolute value of the current high minus the previous close, or the absolute value of the current low minus the previous close, then averaging this over a set number of periods. For example, if a pair has an ATR of 80 pips on the daily chart, it means the price has recently moved an average of 80 pips per day. As a result, ATR provides a practical benchmark for assessing forex volatility in real trading conditions. Read more：The best forex indicators every trader should use in 2025 Standard Deviation Standard deviation is a statistical measure that shows how much price deviates from its average over a given period. In forex trading , standard deviation is used to quantify the dispersion of price movements, making it a direct measure of volatility. This matters because greater dispersion means larger and more frequent price swings. The core principle is that higher standard deviation values indicate increased volatility, while lower values suggest more stable market conditions. For example, if a currency pair’s average price over 20 periods is 1.2000 prices frequently move far away from that level, the standard deviation will rise. As a result, traders use standard deviation to identify when markets are becoming unusually active or unusually quiet. Historical Volatility Historical volatility measures how much a currency pair’s price has fluctuated in the past over a specific period. In forex trading , it is calculated by analysing past price data to determine the degree of variation around an average price. This matters because it provides context on whether current market conditions are relatively calm or unusually volatile. The key principle is that historical volatility is backward-looking. For example, if EUR/USD has averaged a 0.6% daily price change over the past 30 days, that figure represents its historical volatility for that period. As a result, traders use historical volatility to compare current price behaviour with past norms and assess whether volatility is expanding or contracting. Relative Strength Index (RSI) The Relative Strength Index (RSI) is a momentum indicator that can also provide insight into forex volatility. In forex trading , RSI measures the speed and magnitude of recent price changes, typically over a 14-period setting. This matters because sharp, rapid price movements often coincide with rising volatility. The core principle is that extreme RSI readings often appear during volatile market conditions. For example, when RSI moves quickly above 70 or below 30, it usually reflects strong momentum driven by heightened price swings. As a result, traders use RSI alongside other volatility tools to identify overstretched markets and periods of intensified price movement. Read more：The best forex indicators every trader should use in 2025 Pip Movement Pip movement is a simple and practical way to assess forex volatility by measuring how many pips a currency pair moves over a given period. In forex trading , larger daily or hourly pip ranges indicate higher volatility, while smaller ranges suggest calmer market conditions. This matters because pip movement directly reflects real price behaviour that traders experience. The core principle is straightforward: the more pips a market moves, the more volatile it is. For example, if GBP/JPY regularly moves 150–200 pips per day while EUR/CHF averages 30–40 pips, the former is clearly more volatile. As a result, monitoring pip movement helps traders choose suitable currency pairs and adjust position sizes to match current volatility levels. Read more：What are pips in forex and how to calculate their value Highly Volatile Forex Pairs Highly volatile forex pairs are currency pairs that tend to experience larger and more frequent price movements compared to others. In simple terms, these pairs move more pips in a typical trading day, creating both increased opportunity and increased risk. This matters because traders must adjust risk management and strategy when trading volatile pairs. The core principle is that volatility is often higher in pairs that involve currencies with different economic profiles, interest rates, or sensitivity to global risk sentiment. As a result, understanding which pairs are more volatile helps traders select markets that match their experience level and trading objectives. Common Highly Volatile Forex Pairs Currency Pair Type Average Daily Range Feature EUR/USD Major Moderate High liquidity, reacts strongly to US data USD/JPY Major Moderate Sensitive to risk sentiment and bond yields GBP/USD Major High Volatile during UK and US news releases USD/CHF Major Moderate Safe-haven flows during risk-off periods AUD/USD Major High Sensitive to commodities and China-related news USD/CAD Major Moderate to High Strongly influenced by oil prices NZD/USD Major High Lower liquidity amplifies price movement EUR/GBP Cross Moderate Driven by relative UK–EU economic outlooks EUR/JPY Cross High Combines euro flows with yen risk sensitivity GBP/JPY Cross Very High Known for large, fast price swings In practice, pairs like GBP/JPY are often favoured by experienced traders due to their large ranges, while lower-volatility pairs may suit beginners. For this reason, volatility should always be considered alongside experience level and risk tolerance. Read more：What is a currency pair? Definition, types, and examples What Are the Best Strategies to Trade Forex Volatility? Trading forex volatility requires a cautious and structured approach, as rapid price movements can amplify both opportunity and risk. In simple terms, volatile markets can work for or against traders much faster than expected. This matters because poor preparation in volatile conditions often leads to oversized losses rather than improved returns. The core principle is not to avoid volatility, but to adapt to it. For this reason, traders use specific strategies to manage risk, control exposure, and maintain discipline when market conditions become unstable. Risk Management Risk management is essential when trading in highly volatile forex markets. In forex trading , increased volatility means wider price swings, which can magnify both gains and losses. This matters because even a well-timed trade can fail if risk is not controlled. The key reason risk management becomes more important in volatile markets is unpredictability. As a result, traders often reduce leverage, widen stop-loss levels appropriately, and limit overall exposure to protect their capital. Read more：10 Forex risk management tips every trader should know Short-Term Trading Short-term trading is often used in volatile markets to take advantage of rapid price movements. In simple terms, this approach focuses on shorter holding periods rather than long-term exposure. This matters because prolonged exposure increases the risk of being caught in sudden reversals. The core principle is to respond quickly and exit trades efficiently. As a result, short-term traders aim to reduce time-based risk while still benefiting from heightened volatility. Using Stop-Loss and Take-Profit Orders Stop-loss and take-profit orders are tools used to predefine exit conditions before entering a trade. In forex trading , this helps remove emotion from decision-making, especially during fast-moving markets. This matters because volatility can trigger impulsive reactions. The key benefit is control. As a result, traders know their maximum risk and potential reward in advance, even when prices move rapidly. Monitoring Volatility Indicators Monitoring volatility indicators helps traders stay aligned with current market conditions. In simple terms, indicators such as ATR or Bollinger Bands provide real-time insight into whether volatility is expanding or contracting. This matters because strategies that work in low-volatility environments often fail in high-volatility markets. The core principle is alignment. For example, rising ATR values may prompt traders to widen stops or reduce position size. As a result, indicators support better-informed trading decisions. Trading Multiple Currency Pairs Different currency pairs exhibit different volatility characteristics. In forex trading , focusing on only one pair can increase exposure to a single volatility environment. This matters because volatility can change suddenly. The key reason diversification helps is balance. As a result, trading multiple pairs can reduce reliance on one market condition and smooth overall performance. Read more：What is a currency pair? Definition, types, and examples Avoiding Major Market Events Major economic releases and unexpected events often bring unpredictable volatility. In simple terms, price behaviour around such events can be erratic and difficult to manage. This matters because technical levels may temporarily lose effectiveness. The core principle is discretion. As a result, some traders choose to stay on the sidelines during major events to avoid unnecessary risk. Read more：ECONOMIC CALENDAR Adjusting Position Size Position size directly affects trading risk, especially during volatile conditions. In forex trading , higher volatility means a larger potential price move per trade. This matters because using the same position size in all conditions can increase risk exposure. The key reason position sizing is critical is risk consistency. As a result, reducing trade size during volatile periods helps keep potential losses within acceptable limits. FAQ – Forex Volatility What is volatility in forex? Forex volatility refers to the degree and speed of price fluctuations in currency pairs over a specific period. Higher volatility means larger and faster price movements, while lower volatility indicates more stable market conditions. Is 20% volatility high? Volatility indexes such as the VIX are expressed as percentages. Readings below 12 suggest low volatility, values between 12 and 20 indicate normal volatility, and levels above 20 are generally considered high and associated with increased market uncertainty. Is high volatility good in forex? High volatility creates larger price swings, which can offer more trading opportunities but also increase risk. Understanding forex volatility is essential for applying the right trading strategy and managing risk effectively in fast-moving markets. Which strategy is best in volatility? Strategies that focus on flexibility and risk control tend to perform better in volatile conditions. Short-term trading approaches and strict risk management are commonly used to adapt to rapid price movements. Read more：15 Best Trading Strategies Recommended by Top Traders What is the best volatility indicator for forex? Bollinger Bands are widely used to assess volatility. They consist of a moving average with upper and lower bands calculated using standard deviation, allowing traders to identify expanding or contracting market conditions. Conclusion Forex volatility describes the magnitude and speed of price movements in the foreign exchange market and plays a central role in shaping trading conditions. In simple terms, higher volatility creates larger price swings, while lower volatility results in calmer, more stable markets. This matters because the level of volatility directly influences trading risk, potential opportunity, and decision-making. The key takeaway is that forex volatility is neither good nor bad on its own, it depends on how well traders understand and manage it. By recognising what causes volatility, knowing how to measure it, and adapting strategies accordingly, traders can better align their approach with current market conditions. As a result, a solid understanding of forex volatility helps traders make more informed decisions, manage risk more effectively, and trade with greater consistency across different market environments. 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  ●  Gold approaches $5,000   ●  Silver sets eyes on $100   ●  US stocks rebound Precious metals on the verge of history Gold and silver are both inches away from hitting seismic milestones. Gold came within $40 of the $5,000 mark earlier today, while silver pushed over $99, putting it less than a dollar away from three figures. Not one to be forgotten, platinum was up to $2,600 per ounce this morning after surging the better part of 6% yesterday. All three metals enjoyed blistering rallies yesterday and the momentum is once again fully intact as of this morning. We are only a few weeks into 2026 and gold, silver and platinum are already up by 15%, 38% and 30% respectively, completely demolishing expectations and forcing major institutions to increase forecasts for precious metals. While tensions surrounding Greenland have abated in the latter half of this week, safe-haven flows have not. For now, precious metals are enjoying the view from the top. US stock markets rebound US stocks have all but recovered from the selloff earlier in the week after enjoying a modest rally over the last two sessions, with the Dow Jones in particular almost notching a new record intra-day high on Thursday. Wall Street had extra reason to be optimistic yesterday after the latest revision to Q3 GDP growth, which revealed that the US economy grew at an annualised rate of 4.4% in the third quarter, beating previous estimates. The Dollar continued its slide against other major currencies yesterday, pushing the Pound up to $1.35 and the Euro up to $1.175. The exception is the Japanese Yen, which is fast approaching record lows against the Dollar, nearing 159 Yen. Meanwhile, in cryptocurrencies, Bitcoin is once again anchored to the middle of the same price range it has been enjoying since November, sitting comfortably just under $90,000 per coin. #Metals #DJI

  ●  Gold blasts through $4,800   ●  Markets in risk-off mode   ●  Global bonds in disarray Markets in risk-off mode As one would expect, events surrounding Greenland are leading the news cycle, including new tariff threats between the US and Europe, but tensions may ramp up in earnest later today with President Trump’s appearance at the Davos summit in Switzerland. Suffice to say markets are in risk-off mode for the time being. Traders took money off the table early this week, with stocks and cryptocurrencies bearing the brunt of the selloff. Stock indices around the world continued to fall yesterday, but the declines in the US were particularly sharp due to American market closures on Monday, forcing traders to catch up to the losses in Europe and the Far East. The Dow, S&P 500 and Nasdaq Composite all closed yesterday’s session in the red, although the selling pressure has lacked any real degree of conviction so far. The flight to safe-haven assets pushed Bitcoin below the $90,000 threshold yesterday but there too the damage appears to be contained for now and cryptocurrencies are back in the green as of this morning. The selloff in the US Dollar is somewhat more convincing, pushing the DXY down to the mid-98 range. Safe-haven flows lift gold The real winner in all of this is of course gold. The precious metal has gone from strength to strength so far this week, breaching $4,700 for the first time on Tuesday, and fully maintaining its momentum during this morning’s session. The metal now sits above $4,860 per ounce and the question of the all-important $5k milestone is on everyone’s mind. Silver is asking its own questions after briefly venturing above $95 yesterday, but unfortunately the white metal was unwilling to provide any answers this morning, instead dipping back down below $94. Platinum and palladium remain on the front foot, although current flows firmly favour gold. Bond markets in disarray Woes in the Japanese bond market deepened yesterday, with yields on thirty-year government bonds spiking to decade-highs. Yields have been climbing steadily for months, but after Japanese PM Sanae Takaichi called a snap election on Monday, investors are increasingly concerned about potential monetary stimulus down the line. The rise in bond yields is certainly more pronounced in Japan, but given the global nature of debt markets, the phenomenon is spreading to long-term US, UK and German bonds as well, which have all seen modest selloffs this week. Rising bond yields will lead to higher borrowing costs in general, to which world leaders are very sensitive. #Gold #Bond

From processing power to computer memory Artificial Intelligence took the world by storm in 2025 and every company even remotely associated with the sector saw their stock price increase dramatically. Vocal supporters of AI, such as Palantir (PLTR) and Alphabet (GOOG), rose 135% and 65% respectively last year. The companies building the chips required to train and run AI models also shot up. Nvidia (NVDA), Broadcom (AVGO), Taiwan Semiconductor Manufacturing Company (TSM), ASML Holding (ASML) and Advanced Micro Devices (AMD) were all fantastic plays last year, and these companies are likely to remain in the spotlight for much of 2026 as well. Chip manufacturers are a major piece of the AI puzzle, but so too are the companies responsible for providing memory and data storage. Vast amounts of computing power need to be matched with vast amounts short- and long-term storage capacity. While deeply intertwined, chip fabrication and memory/storage manufacturing are separate businesses. Up until now, attentions have been firmly focused on the former. While Micron Technology (MU) absolutely smashed through the ceiling last year, gaining 240% in 2025, the company’s share price remains relatively down to earth compared to some of the price-to-earnings ratios seen in the wider technology sector. Although not as complex of an industry, memory can be just as much of a bottleneck to production as chip manufacturing. Just as with chipmakers, memory producers are a very small group of companies. Samsung, Hynix and Micron make up the vast majority of the market, with very little manufacturing capacity found outside of these big three. The bottlenecks do not stop there either. Chip manufacturing and memory are arguably the larger components, but the AI sector depends on far more. Data servers, cloud computing, cybersecurity and high-speed, high-bandwidth infrastructure all play their part, but so too do the end user applications, including IoT devices, automation and software. All the companies downstream of developments in artificial intelligence are likely to garner their fair share of investor attention at some stage. Just as market sentiment trickled down from gold, to silver, to other metals last year, the AI sector may well experience a similar process in 2026. Energy markets and Small Modular Reactors Another crucial part of the Artificial Intelligence sector is the energy required to run it. The training of AI models is an extremely power-hungry activity that requires consistent and reliable sources of electricity. While oil and gas have traditionally provided much of the power used in heavy industry, modern tech companies are typically looking for something more on the green side. Wind and solar are all well and good, but do not meet the consistency requirement of data centres and server farms. Nuclear is the path forward, and the field is projected to see a sharp rebound in 2026. Meta Platforms (META) recently announced a 20-year agreement to buy nuclear power from Vistra (VST), while also committing to help the development of small modular reactors (SMRs) with Oklo (OKLO) and TerraPower. A collaboration between X-Energy, another SMR developer, and Amazon Web Services is being established. Digital infrastructure company Equinix (EQIX) is in partnership with Rolls-Royce SMR in an effort to pursue clean energy for its AI-driven data centres. The list goes on. After many years of stagnation and plant closures across the world, the nuclear industry is undergoing somewhat of a renaissance. The sector has traditionally relied on huge, state-funded plants that require decades of construction and commissioning. Many such plants are currently undergoing refits and upgrades, but in the short term, something more flexible is needed. Emerging sectors of technology need clean, reliable power, and they need it now. Small modular reactors mark a completely different approach to the matter. Production is intended to be streamlined and commercially viable, pushing out mass-produced individual components that can be assembled on site, as and when power requirements arise. Need more power? Add a second reactor, or even a third and fourth. Nuclear startup companies are springing up across the world, with largely aligned goals and design philosophies. The more complex an industry, the more complex its supply chains. Just as with the AI sector, the nuclear sector is heavily dependent on a huge number of sub-industries, all of which contribute to the larger picture. The most obvious to come to mind is probably the uranium mining industry, directly accessible via several ETFs. Enrichment and fuel assembly manufacturers come next. Reactor pressure vessels and steam generators both require advanced forging facilities – a relatively limited field. Turbines and electricity generating systems; electrical integration and substations; exotic materials for radiation-resistant components; civil engineering; software; waste management… The nuclear industry has a deep and diverse supply chain, each component of which is likely to benefit from renewed interest in the sector as a whole. This is the year for cryptocurrencies (for real this time) If there is one word that could describe cryptocurrencies in 2025, it would be the word “disappointing”. Bitcoin may well have hit an all-time high in October of last year, but it is fair to say that most people were expecting a little more than what they got. Bitcoin topped out at around $69,000 in 2021, a target that would not even be doubled in the subsequent bull run, which saw peaks of around $125,000. BTC would end the year around 6% in the red, meaning it got outperformed by basically everything. A savings account would have been a better bet. Storing money under a mattress would have yielded better results. The wider crypto market fared even worse than Bitcoin did. The fact that such a performance occurred during a year where every major stock market and precious metal hit a record high, only adds insult to injury. Institutional interest was certainly present. ETFs saw huge inflows, strategic cryptocurrency reserves took off, and the regulation side of things was far more positive compared to previous years. And yet, the entire market felt boring, uneventful, subdued. Tamed, some might say. This is the problem with institutional money. The crypto sphere is starting to get the recognition it always craved. It should have been careful with what it wished for. If the GENIUS Act was a small step in the right direction, then the Clarity Act would have been a giant leap in comparison. A number of events were supposed to occur last year, but because of the government shutdown in the United States, they did not. The Clarity Act is not dead by any means, but like any major piece of legislation, it is at the mercy of powerful interests and partisanship. The bill would set the stage for what is acceptable and what is not, and under which regulatory body different practices would fall. This is essentially the green light for companies who have already built vast networks of decentralised financial infrastructure but are unable to flip the switch out of fear of legal action. A frustrating situation. The nonsensical hype is over, soon to be replaced by novel financial instruments that should be beneficial to all. Once the relevant legislation comes into effect, both in the US and globally, the flood gates will open, and cryptocurrencies may finally enter a new era.

  ●  New record high for gold   ●  Silver reclaims $93   ●  Modest selloff in Bitcoin Greenland jolts markets Gold opened the Monday session with yet another gap to the upside this morning, in what is now becoming a regular move. The precious metal wasted no time pushing to highs of $4,690 per ounce within hours of the opening bell, setting yet another record high. Silver is also on the front foot this morning, reclaiming $93 per ounce and recovering nicely from the selloff that occurred at the end of last week. Greenland appears to be the setting for the latest drama, with President Trump threatening to impose tariffs on the European nations getting in the way of any potential deal involving the arctic nation. Platinum, palladium and other metals have not responded to the ongoing situation as of yet, remaining neutral so far morning. US and European stock futures alike are down in light of the new developments. Over in the digital world, Bitcoin sold off sharply early this morning, pushing prices down to $91,000 and successfully dousing the momentum painstakingly scrambled together over the course of last week. The week ahead Inflation is the name of the game this week, with countries from around the world lining up to deliver their respective consumer price indices. The Eurozone and Canada will publish their latest figures later today, while the UK will follow on Wednesday. Thursday promises to be a busy day for the economic calendar, with the final revision of US GDP third quarter growth, followed by the delayed PCE price index for October and November, as well as personal spending and income for those two months. The PCE index would usually play a considerable part in steering the Fed’s decision-making process, but the data are several months out of date at this point, and markets are fully pricing in a rate hold during next week’s FOMC meeting. The Japanese government is set to release inflation figures on Friday, before the Bank of Japan delivers what is widely expected to be a rate hold on the Yen. Scheduled economic publications aside, events surrounding Greenland are likely to dominate market sentiment for a while, although ongoing developments in Iran are not to be overlooked either. #Gold #Silver #CPI

The dreaded “margin call, your screen turns red and a feeling of impending doom is about too decent on you, and your account is about to blow up in front of your eyes! In forex trading, a margin call is one of those things every trader hopes they’ll never experience, but many eventually do. The term “margin call” refers to a situation where your broker demands action because your account no longer has enough equity to support your open positions. This matters because margin calls are not random events; they are the direct result of risk building quietly in the background. In simple terms, a margin call happens when losses reduce your account balance to a level that breaches your broker’s margin requirements. At that point, your broker steps in to protect themselves from further risk, often before you fully realise how exposed your account has become. This is why understanding margin calls is not optional, it is a core part of effective risk management. For this reason, every forex trader should clearly understand what a margin call is, what triggers it, and how it can be avoided. The sections below explain what a margin call is, why it happens, and practical steps traders can take to avoid margin calls before they threaten their trading account. What Is a Margin Call in Trading? A margin call in trading occurs when a trader’s account equity falls below the minimum level required to maintain open positions. In forex trading, the term “margin call” refers to a broker’s warning that your available funds are no longer sufficient to support the risk you have taken. This matters because once a margin call is triggered, your control over the account starts to shrink rapidly. In simple terms, a margin call happens when market losses reduce your equity to a point where the broker considers the account unsafe. Margin exists as a risk management tool, allowing traders to control larger positions with borrowed funds while protecting brokers from excessive losses. When that protection level is breached, the broker intervenes. When a margin call occurs, traders typically have limited options. They may need to add funds, close positions, or reduce exposure to restore the required margin level. As a result, understanding how margin calls work is essential, because reacting late, or not at all, can lead to forced position closures and avoidable losses. Read more:What is margin trading and how it works in forex Read more:Top forex brokers to trade with in 2025 What Triggers a Margin Call? In forex trading, a margin call is triggered when a trader uses both their own capital and borrowed funds from a broker to open positions, and those positions move against them. This process is known as margin trading, and while it allows traders to control larger positions, it also increases risk. This matters because even relatively small price movements can have an outsized impact on account equity. A margin call occurs when losses reduce the account’s equity to a level that no longer meets the broker’s margin requirements. At this point, the broker issues a warning to prevent further losses and protect the funds they have effectively lent to the trader. In practice, margin calls are not caused by a single mistake, but by a combination of exposure, leverage, and adverse price movement. Read more:What Is Forex? 7 Steps to Learn How It Works & Start Trading The most common triggers for a margin call include: Falling margin levels Large unrealised losses High leverage Low free margin For this reason, understanding each of these triggers individually is critical, as margin calls usually build up gradually rather than appearing out of nowhere. Read more:What is leverage and how it works in forex trading？ Falling Margin Levels A margin call is triggered when a trader’s equity falls below the margin level required by the broker. In forex trading, margin level is a key risk indicator that shows how much usable capital remains relative to the margin already tied up in open positions. This matters because the margin level determines whether your broker considers your account stable or at risk. The margin level is calculated using the following formula: Margin Level = Equity ÷ Used Margin In simple terms, equity reflects your account balance plus or minus unrealised profit or loss, while used margin is the amount currently locked into open trades. When losses increase, equity falls, but used margin stays the same, causing the margin level to drop. Example:If your equity is $1,000 and your used margin is $500; your margin level is 200%. If losses reduce equity to $500 while used margin remains $500, the margin level falls to 100%, which may trigger a margin call depending on the broker’s threshold. As a result, falling margin levels are often the first clear warning sign that a margin call is approaching. Large Unrealised Losses Large unrealised losses occur when open trades move significantly against a trader but have not yet been closed. In forex trading, these floating losses directly reduce account equity even though no loss has been “locked in” yet. This matters because margin calls are based on equity, not just your account balance. In simple terms, the market does not care whether a loss is realised or unrealised, your broker treats both the same when assessing risk. As unrealised losses grow, equity falls while used margin remains unchanged, causing the margin level to deteriorate rapidly. This is why traders can face margin calls even when they believe they are “just waiting for price to come back.” Large unrealised losses are especially dangerous when traders refuse to cut losing positions or widen stop losses out of hope. As a result, floating losses are one of the most common and underestimated causes of margin calls in forex trading. High Leverage High leverage allows forex traders to control large positions with a relatively small amount of capital. In forex trading, leverage magnifies both profits and losses, which means even small market moves can have a dramatic impact on account equity. This matters because high leverage significantly increases the likelihood of a margin call. In simple terms, the higher the leverage, the less room your trade has to move against you before losses start eating into your margin. While leverage can boost returns in favourable conditions, it also accelerates drawdowns when the market moves the wrong way. As a result, traders using excessive leverage often reach margin call levels far faster than they expect. High leverage becomes especially dangerous when combined with poor risk management or multiple open positions. For this reason, understanding how leverage works, and using it conservatively, is one of the most effective ways to reduce the risk of a margin call. Read more: What is leverage and how it works in forex trading? Low Free Margin Low free margin refers to the amount of capital left in a trading account that is not tied up in open positions. In forex trading, free margin is what allows traders to open new trades or absorb temporary losses without triggering a margin call. This matters because once free margin approaches zero, the account has no buffer left. Free margin is calculated using the following formula: Free Margin = Equity − Used Margin In simple terms, equity fluctuates with market movements, while used margin stays fixed as long as positions remain open. When losses increase, equity falls and free margin shrinks, even if the trader does nothing. As a result, low free margin leaves traders extremely vulnerable to sudden price swings, spreads widening, or volatility spikes that can quickly trigger a margin call. How to Calculate a Margin Call? A margin call is effectively determined by how much free margin and equity remain in a trading account relative to the broker’s required margin level. In forex trading, understanding this calculation helps traders recognise risk early rather than reacting after a warning appears. This matters because margin calls are mathematical outcomes, not subjective decisions. As a reminder, free margin is calculated as: Free Margin = Equity − Used Margin When equity declines due to unrealised losses and approaches the level of used margin, free margin shrinks toward zero. At that point, the margin level falls toward the broker’s margin call threshold, increasing the risk of forced action. In practice, traders can estimate how close they are to a margin call by monitoring equity in real time and comparing it to used margin. As a result, regularly checking these figures allows traders to manage risk proactively rather than being surprised by a margin call notification. Margin Call Example To put it simply, a margin call occurs when losses reduce a trader’s equity to a level that can no longer support open positions. A practical example helps show how quickly this can happen in real trading conditions. This matters because many traders underestimate how fast margin levels can fall. Example scenario:A trader deposits $1,000 into a forex account and opens positions requiring $500 in used margin. This gives the account a margin level of 200%. If the market moves against the trader and unrealised losses reach $400, equity drops to $600 while used margin remains $500. The margin level now falls to 120%. If losses increase further and equity drops to $500, the margin level falls to 100%, which may trigger a margin call depending on the broker’s rules. As a result, even a modest-looking loss can quickly escalate into a margin call if position size and leverage are too high. When Does a Margin Call Happen? A margin call happens when an account’s margin level falls below the threshold set by the trading platform. In forex trading, this threshold is defined by the broker and can vary depending on the account type, instrument traded, or regulatory requirements. This matters because traders often assume margin calls happen at the same level everywhere, which is not the case. In simple terms, once your margin level drops into the broker’s danger zone, a margin call notification may be issued. However, the timing of this alert is not always perfectly synchronized with the exact moment the threshold is breached. Notifications can be delayed slightly due to system processing, fast-moving markets, high volatility, or temporary liquidity shortages. For this reason, traders should never rely on margin call alerts as a risk-management tool. Monitoring margin levels proactively is far safer than reacting after a warning appears. Margin Level Risk Ranges Margin Level Risk Description Above 200% Healthy account condition with ample buffer to absorb losses 100%–200% Elevated risk zone: losses are reducing available flexibility At or below the broker’s margin call threshold Margin call warning may be issued At or below the broker’s stop-out threshold Positions may be forcibly closed to prevent further losses As a result, understanding these ranges helps traders recognise risk early and act before control of the account shifts to the broker. How to Respond to a Margin Call? When a margin call occurs, it signals that a trading account is approaching a critical risk level. In forex trading, failing to respond quickly can result in the broker taking control of the situation. This matters because once margin levels fall too far, traders may lose the ability to decide how and when positions are closed. If a margin call is ignored or not addressed in time, several consequences may follow: Declining free margin: As losses increase, available funds shrink further, reducing flexibility Position closures: The broker may begin closing open trades Forced liquidation: Positions can be closed without the trader’s consent Unfavourable execution prices: Trades may be closed during volatile conditions, leading to slippage To avoid these outcomes, traders must act decisively when a margin call is triggered. The most common responses include adding funds, reducing exposure, freeing up margin, or adjusting leverage and position size, each of which impacts the account differently. For this reason, understanding these options in advance is critical rather than reacting under pressure. Read more:How to start forex trading: A beginner’s guide with 7 key tips Add Funds Adding funds means depositing additional capital into a trading account to increase equity and restore the required margin level. In forex trading, this is often the fastest way to respond to a margin call because it immediately improves free margin and margin level. This matters because time is usually limited once a margin call is triggered. In simple terms, adding funds gives the account more breathing room without changing any open positions. However, this approach does not fix the underlying problem if the trades themselves are poorly managed or overleveraged. As a result, adding funds can sometimes delay losses rather than prevent them. Traders should also consider the risks before choosing this option: Additional capital is exposed to the same market risk Losses may continue if the market keeps moving against open positions Emotional decision-making can lead to throwing “good money after bad” For this reason, adding funds should be a calculated decision, not an automatic reaction to a margin call. Reduce Exposure Reducing exposure means closing part or all of one or more open positions to lower overall risk. In forex trading, this immediately decreases used margin and can stabilise an account that is close to a margin call. This matters because reducing exposure tackles the root cause of the problem rather than simply adding more capital. In simple terms, fewer open positions mean less borrowed money is in use and smaller potential losses if the market continues to move against you. By selectively closing trades, often the weakest or most overleveraged ones, traders can quickly improve margin levels. As a result, reducing exposure is often a more disciplined response than adding funds. However, traders should be aware of the trade-offs: Losses may be realised immediately Closing positions at poor prices can feel emotionally difficult Poor trade selection when reducing exposure can worsen overall performance For this reason, reducing exposure works best when decisions are made based on risk, not emotion. Free Up Margin Freeing up margin involves releasing margin that is already tied to open positions, usually by closing or partially closing trades. In forex trading, this reduces used margin and improves free margin without necessarily adding new funds. This matters because it gives the account more flexibility to withstand further market movement. In simple terms, freeing up margin lowers the amount of capital locked into trades, which raises the margin level even if equity stays the same. Traders often achieve this by scaling out of positions or closing trades with high margin requirements. As a result, this approach can be an effective way to stabilise an account during volatile market conditions. That said, traders should consider the risks: Partial closures may limit potential recovery if the market reverses Poor timing can lock in unnecessary losses Overuse of this approach can disrupt a well-planned strategy For this reason, freeing up margin should be part of a broader risk management plan rather than a last-minute rescue attempt. Adjust Leverage and Position Size Adjusting leverage and position size means reducing how much market exposure each trade carries relative to account equity. In forex trading, this directly lowers margin requirements and slows the rate at which losses can trigger a margin call. This matters because leverage is one of the main accelerators of account drawdowns. In simple terms, smaller position sizes require less borrowed capital, giving trades more room to breathe. Lower leverage reduces the sensitivity of the account to price fluctuations, especially during volatile periods. As a result, traders who scale position sizes appropriately are far less likely to face sudden margin calls. However, traders should be mindful of the following: Reduced position size may lower short-term profit potential Over-adjusting after losses can lead to inconsistent strategy execution Changes should align with a defined risk-per-trade rule For this reason, adjusting leverage and position size should be a proactive habit, not a reaction after damage has already been done. Read more: What is leverage and how it works in forex trading? How to Avoid a Margin Call To put it simply, avoiding a margin call comes down to managing risk before it becomes a problem. In forex trading, margin calls are not bad luck, they are the result of excessive exposure, poor planning, or ignoring account metrics. This matters because prevention is far easier (and cheaper) than reacting once a margin call appears. Traders who successfully avoid margin calls typically follow a small set of disciplined habits. These strategies focus on maintaining sufficient equity, controlling leverage, and staying aware of open risk at all times. As a result, margin calls become rare events rather than recurring surprises. Below are several practical methods traders can use to reduce the likelihood of a margin call. Read more: 10 Forex risk management tips every trader should know Create a Cash Cushion Creating a cash cushion means keeping a portion of your account balance unused and uncommitted to open trades. In forex trading, this buffer absorbs temporary drawdowns and protects margin levels during normal market fluctuations. This matters because accounts running at full capacity have no room for error. In simple terms, a cash cushion gives trades space to develop without immediately threatening margin requirements. Traders who operate with excess free margin are far less vulnerable to sudden volatility spikes. For this reason, trading below maximum capacity is one of the most effective margin call prevention techniques. Monitor Your Open Positions Monitoring open positions involves regularly checking equity, margin level, and unrealised profit or loss while trades are active. In forex trading, conditions can change quickly, especially during news events or low-liquidity periods. This matters because margin risk increases even when traders are not placing new trades. By tracking account metrics in real time, traders can reduce exposure early rather than waiting for broker warnings. As a result, monitoring positions helps traders stay proactive instead of reactive. Read more: FOREX NEWS Read more: What is liquidity in Forex and how is it measured Build a Well-Diversified Portfolio A well-diversified portfolio spreads risk across multiple instruments rather than concentrating exposure in a single currency pair or direction. In forex trading, diversification helps smooth equity fluctuations when individual positions move against expectations. This matters because concentrated risk accelerates margin erosion. In simple terms, diversification reduces the impact of any single losing trade on overall margin levels. For this reason, traders who avoid overloading correlated positions are less likely to face sudden margin calls. Use Stop-Loss Orders Using stop-loss orders means defining a maximum acceptable loss before entering a trade. In forex trading, stop losses automatically close positions before losses grow large enough to threaten margin requirements. This matters because uncontrolled losses are one of the fastest paths to a margin call. Stop losses protect equity, preserve free margin, and enforce discipline during volatile markets. As a result, traders who consistently use stop losses maintain far greater control over margin risk. FAQ What Is a Margin Call in Simple Terms? A margin call occurs when a trader’s equity in a margin account falls below the broker’s required minimum level. When this happens, the trader must add funds or close positions to restore the account balance and meet margin requirements. This matters because margin calls are designed to protect both the trader and the broker from further losses. What Happens If You Ignore a Margin Call? Failing to act on a margin call can lead to serious financial consequences. Consequences of ignoring a margin call include: Forced liquidation: The broker may close positions without prior notice Loss of control: Trades may be closed at unfavourable prices Permanent capital loss: Losses may exceed expectations during volatile markets As a result, ignoring a margin call often leads to worse outcomes than acting early. How to Avoid Margin Calls in Trading? To meet a margin call, traders can deposit additional funds or close open positions to restore margin levels. To avoid margin calls entirely, traders should understand margin requirements, use stop-loss orders, control leverage, and maintain adequate free margin. This matters because disciplined risk management the likelihood of margin calls occurring in the first place. How Long Does a Margin Call Last? A margin call typically lasts two to five days, depending on the broker and market conditions. During highly volatile markets, traders may be required to act much faster. If a trader fails to respond within the required time frame, the broker may liquidate positions without consent to cover the shortfall. What Is the Golden Rule of Margin Trading? The golden rule of margin trading is to use leverage cautiously and always manage downside risk. Traders should never risk more capital than they can afford to lose, as leverage can rapidly amplify losses when markets move against them. For this reason, disciplined risk control is essential when trading on margin. Read more：What is margin trading and how it works in forex Try these Next What is margin trading and how it works in forex？ What is leverage and how it works in forex trading？ What Is the Spread in forex? Learn to Calculate and Trade It What is slippage and how to avoid it in trading What are pips in forex and how to calculate their value What is a currency pair? Definition, types, and examples What is liquidity in Forex and how is it measured