DotBig Forex Broker: Strategies for Navigating High-Volatility Markets

In trading, brokers providing multi-asset services became very popular among traders of any skill level. These platforms offer a variety of trading terminals, utilities, and tools for dealing with all types of securities. Regardless of whether you are a Forex newcomer or an experienced player, picking a multi-active exchange, such as DotBig, is a crucial step.

Individual market goals may vary, so the choice of an online broker must match your basic financial intention. DotBig Forex broker offers anyone worldwide a brilliant set of services and tools for running profitable deals using proven tactics.

What is Market Volatility?

Many things matter for global markets and volatility is the basic point. This is the basis of a price change. Using its features correctly one can make financial profits. Without volatility, the price would not change its direction at all, and there would be no dynamics in the Forex space that make it possible to engage in trading or earn money from exchange deals.

Mainly, volatility shows the level of deviation in the cost of a security over a particular period. There are three basic degrees of volatility: low, medium, and high.

The Forex market is the best example of a low-volatility space. Just a simple example, — the USD JPY currency pair has been trading in the 7.5% range for the last few years.

However, despite the low volatility, it is still possible to earn big with Forex. Traders can increase the frequency or size of their trades to compensate for the lack of intense price movements in the market.

The stock market is a medium-volatility market. Some may have considered it a highly volatile market before the advent of cryptocurrencies like Bitcoin.

For example, the S&P 500 traded in a significant range of 40% during 2019. The first half of the year remained in the 28% range, while the second half was trading in the 18% range.

Bitcoin is a highly volatile asset. Cryptocurrencies themselves are a speculative asset class, which makes them pretty susceptible to impressive price fluctuations. In the example below, Bitcoin has increased by 250% over the same one-year period in 2019.

In the same year, it fell by more than 62%. It also had another 46% drop, a 42% rise, and another 165% rally over the same period. It is these large fluctuations that give this asset class the highest volatility.

How to Benefit from High Volatility in Trading?

Making a profit based on volatility data is more suitable as a strategy for investors who conduct short-term trading. With high volatility, one can make a profit due to sharp price fluctuations during the trading week, day, or even hour.

If you follow a long-term strategy and rarely check the status of your portfolio, you may notice how the volatility of your financial instruments is changing. At the same time, this indicator can also bring you profit in this case.

Let’s look at a simple example. There are two investors who send 10,000 euros in securities every six months. But the first one chooses assets with low volatility, while the second invests funds in securities with sharp price fluctuations.

After 3 years, the portfolio of the second investor showed a higher return compared to the portfolio of the first one. At the same time, securities from both portfolios grew in value evenly, and the amounts of investments were the same. How did it happen that market assets with high volatility brought more profit?

This is because reducing the cost by 10% and increasing it by the same 10% are two different things. Let’s say the asset price is 100 euros. If it drops by 10%, then its new value will be equal to 90 euros. Accordingly, the investor will lose 10 euros from each security in the portfolio. But if its price rises to 100 euros again, the price increase will be 11.1%.

It means that trading and investing in highly volatile markets is quite justified and can bring high income.

Trading Volatile Assets with DotBig

Trading on high-volatility markets requires a thoughtful approach and appropriate tools. DotBig Broker provides all the necessary resources for productive online trading, including terminals, analysis tools, and customer support.

1. Technical analysis

With the DotBig site, one can use advanced technical analysis tools to identify the best entry and exit points for trades. Clients can work with indicators such as moving averages, RSI, and MACD to track trends and make informed decisions.

2. Risk management

It is a key approach when trading volatile stocks. DotBig site provides tools for setting Stop Losses and Take Profits, which allows users to track their losses and lock in profits.

3. News Monitoring

According to DotBig reviews, the platform gives access to current news and analytics, which allows traders worldwide to quickly respond to changes in the market case. It is helpful when trading volatile securities, where news can lead to significant rate movements.

4. Educational stuff

DotBig exchange offers comprehensive educational resources to help its clients better learn the specifics of modern volatile markets and horn effective working strategies. Thus, users can study webinars, financial articles, and guides to enhance skills and knowledge.

Financial Benefits with DotBig

Trading volatile products can be a great tool in a trader’s experience, but it requires careful attention and decent risk management. With the DotBig broker, one can access all the necessary tools and resources for successful trading. Whether you are a beginner or an experienced trader, DotBig Investments company will help you make the most of volatile stocks to achieve your financial goals.