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Japanese yen: does this have a very low volatility compared to other currencies?

Howdy! Here is a great forex trading question for your perusal.

For example if I’m investing in a Japanese company with Yen / £’s is the currency not that violent compared to others out there? can you point me in the direction of a volatility graph for the £/yen currency please :)

I enjoyed that forex trading question and answer session. If you aren’t satisfied with any of the answers, please ad your own.

Ya’ll come back now! Ya hear!

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This entry was posted on Saturday, March 6th, 2010 at 3:52 am and is filed under forex made easy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Japanese yen: does this have a very low volatility compared to other currencies?”

  1. b2fnow Says:
    July 29th, 2010 at 11:46 pm

    The USD/JPY pair is not as volatile as the other quoted pairs, but the GBP/JPY pair is more volatile than most because these two currencies often trade in opposite directions when things get really volatile.

    http://forex.tradingcharts.com/charts/

    1. EUR/USD – Euro/U.S. Dollar
    2. GBP/USD – Great British Pound/U.S. Dollar
    3. USD/CHF –- U.S. Dollar/Swiss Franc
    4. USD/JPY –- U.S. Dollar/Japanese Yen
    5. USD/CAD –- U.S. Dollar/Canadian Dollar
    6. AUD/USD – Australian Dollar/U.S. Dollar
    7. EUR/GBP – Euro/Great British Pound
    8. EUR/JPY – Euro/Japanese Yen
    9. EUR/CHF – Euro/Swiss Franc
    10. GBP/CHF – Great British Pound/Swiss Franc
    11. GBP/JPY – Great British Pound/Japanese Yen
    12. CHF/JPY – Swiss Franc/Japanese Yen
    13. NZD/USD – New Zealand Dollar/US Dollar
    14. EUR/CAD – Euro/Canadian Dollar
    15. AUD/CAD – Australian Dollar/Canadian Dollar
    16. AUD/JPY – Australian Dollar/Japanese Yen
    17. EUR/AUD – Euro/Australian Dollar

    NOTE: Of the above 17 currency pairs, six of them are deemed the “major currency pairs” in the FOREX market because they account for about 80 percent of FOREX transactions:

    1. EUR/USD – Euro/U.S. Dollar
    2. GBP/USD – Great British Pound/U.S. Dollar
    3. USD/CHF –- U.S. Dollar/Swiss Franc
    4. USD/JPY –- U.S. Dollar/Japanese Yen
    5. USD/CAD –- U.S. Dollar/Canadian Dollar
    6. AUD/USD – Australian Dollar/U.S. Dollar

    As you can see, there is a currency on the left and one on the right. The one on the left is referred to as the base, and the one listed on the right is known as the cross. The format, once again, is as follows. BASE/CROSS, or EUR/USD. The EUR is the BASE and the USD is the CROSS.

    TERMINOLOGY:
    • PIPS- Price Interest Point. This is the smallest unit price for any Foreign Currency.
    • LOT- A lot of currency is one denomination for a trade (100K or mini account). This is similar to purchasing one stock or one contract in the futures market.
    • LONG to buy
    • SHORT to sell
    • BID-The price at which you sell
    • ASK-The price at which you buy

    Price Interest Point – (PIP)
    Profits are made in the FOREX by gaining PIPS. A pip is the last digit from the decimal point. This value is 1/100th of a cent. You may now be asking yourself, how do I make money off of 1/100th of a cent? The answer is leverage. The FOREX market is highly leveraged and should be respected. That said, it can also provide for a tremendous return on your investment. The average leverage in the FOREX is 100 to 1. Basically this indicates that for every dollar you invest in a trade you are controlling $100 of value.

    Calculated PIP
    Calculated PIP – shows the Price Interest Point (PIP) value for the selected currency pair based upon your trading account margin. For example, a standard 1 percent margin trading account controlling $100,000 in currency would show the EUR/USD with a PIP value of 10.
    PIP VALUE-Fixed or Floating
    FIXED- When the USD is the cross currency (right side of the pair), the PIP value is fixed at $10 in a 100k account.
    FOATING- When the USD is the base currency (left side of the pair), the PIP value is based upon the exchange rate of the cross currency (i.e., USD/CAD.). Also, the PIP value is floating when the pair consists of foreign currencies (i.e., EUR/ GBP).
    LOT
    A lot is the normal unit of trading in the FOREX market. Trades are made in lot increments, similar to share increments in the stock market.
    Standard (or 100k) FOREX account- has a 100:1 leverage ratio

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