Market volatility refers to large price movements in the short term at any time and can affect any market, including stocks, currencies, and commodities. There are several reasons for market volatility, including:
- *Economic events*: such as changes in interest rates, inflation, and economic growth.
- *Political events*: such as elections, trade wars, and political unrest.
- *News and analyses*: such as earnings reports, economic forecasts, and technical analyses.
*Examples of volatile markets:*
- *Stock indices*: such as the S&P 500 index and the Nasdaq index.
- *Currencies*: such as the euro/U.S. dollar pair and the British pound/U.S. dollar pair.
- *Commodities*: such as oil and gold.
*Volatility indices:*
- *VIX index*: measures the volatility of the S&P 500 index.
- *VSTOXX index*: measures the volatility of Euro Stoxx 50 options.
*Volatility trading strategies:*
- *Using technical indicators*: such as the Bollinger Bands indicator and the Average True Range indicator.
- *Monitoring economic events*: such as changes in interest rates and inflation.
- *Using risk management tools*: such as guaranteed stops.
*Helpful trading tools:*
- *Trading platforms*: such as IG platform and TradingView platform.
- *Trading alerts*: such as price alerts and economic event alerts.
The S&P 500 index shows slight volatility, having risen by 0.84% to reach 5979.80.