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Kelvin

What differences are there between volatility and risk in a Forex market?

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Hello Kelvin,
Volatility is the rapid change in the currency exchange rate in a Forex market. Risk is the possibility that a certain loss or an injury will occur.
 You can never control volatility. However, with risk, you can decide whether you want to take up a certain risk.
While taking up a certain risk, for example, you can decide what you want to invest in that market. In volatility, however, you cannot determine the market price of a certain currency.
However, there exists a strong relationship between these two. When you decide to trade volatile currencies, you will take up a risk since prices may distinctly move in whatever direction. This movement may result in losses. 
Investors need to be aware of the risks they are taking up, especially when the market is volatile. Please check out the advantages and disadvantages of that risk to avoid making significant losses.

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