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How can I trade volatility in a CFD market?


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Hi Earnest,

A market being volatile is not a new term in the CFD market and many other financial markets. The market volatility in one market is usually different from another market, and how you will handle may generally depend on your preparedness. 
There may be times where you wish that the market volatility is high so that you can make a good profit from a significant move in the price and others you want the volatility to become low so that you can have some good rest without worrying whether the market prices will change in your sleep. The introduction of the Chicago Board Options Exchange has significantly helped in tracking volatility in many financial markets. They have named the measure of volatility VIX.
It is important to keep in mind several strategies you can employ while trading volatility in a CFD market. One of them is that you need to avoid at all costs taking unnecessary risks. If you know that certain events will affect the market volatility, then you better not place any trade.
You need to use stop-loss orders when placing your trades to protect yourself from risks that you may face. 

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