The Most and Least Volatile Forex Currency Pairs 2025 Top 10

Notwithstanding, our task is to caution unpracticed traders and novices that the danger of such trading is higher than that of trading the exemplary currency pairs. On the other hand, exotic pairs such as USD/ZAR or EUR/HUF are considered less volatile due to their lower trading volumes and limited exposure to global markets. They can still experience significant fluctuations during times of uncertainty or unexpected events. Let’s dig into the stars of the show—here are the least volatile currency pairs you should consider trading. These less volatile pairs don’t skyrocket your profits overnight, but they help you maintain consistency and reduce risk.

• Getting the perfect result is a combination of strategy and proper risk management.
• Some move with the rhythm of global markets, drawing in day traders, institutions, and hedge funds like clockwork.
• Every one of them proceed onward normal for in excess of 100 focuses every day.

Generally, if a pair hasn’t passed its ADR level, there could be more opportunities to take advantage from. The best time of the day for this situation is before the overlapping of the sessions for each currency pair. Imagine you are a scalper and you have set a 5-pip SL for your strategy. You’ve also backtested that in eur/use and come to the conclusion that the strategy is a winning one with that setup.

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Volatility refers to the extent of price movement over a specific period, and understanding which currency pairs are the least volatile can significantly enhance trading strategies. This article delves into the least volatile currency pairs, the factors influencing their stability, and how traders can use these pairs to mitigate risk and improve trading outcomes. In conclusion, forex trading is a highly volatile market, and traders often prefer less volatile pairs as they offer a lower risk and more stable trading environment. The least volatile forex pairs are those that have a low ATR, including the EUR/GBP, USD/CHF, NZD/USD, USD/CAD, and EUR/CHF. Trading less volatile forex pairs offers several benefits, including lower risk, more stable trading environment, and better risk management opportunities.

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• The ATR calculates the average range of price movement in a currency pair over a specific period.
• USD must participate in every pairing under this category, but a slew of currencies not mentioned above enter the picture.
• The chart below is taken from the USDMXN (US Dollar versus Mexican Peso), and is from the daily time frame.
• There are many factors or indicators that can be used to measure volatility.

While low volatility pairs offer a stable trading environment they are not without risks. The potential for profit is limited compared to high volatility pairs. Traders may need to use higher leverage or larger position sizes to achieve meaningful returns which increases risk. The significant factors influencing currency pair volatility usually come from specific economic news data in the Forex News Calendar.

As a result, the EUR/USD tends to experience smaller daily price fluctuations, making it an ideal choice for traders seeking less volatile trading conditions. Novice traders tend to make more mistakes, and trading in a currency pair with high volatility can lead to significant losses. Trading in the least volatile forex pair can help novice traders build their confidence and experience in forex trading without exposing them to too much risk. The USD/CHF currency pair, consisting of the US dollar and the Swiss franc, is recognized as one of the least volatile pairs. The Swiss franc is known as a ‘safe haven’ currency, often performing well during economic uncertainties.

By employing prudent investment strategies in forex, these individuals focus on securing consistent forex gains through a meticulous selection of low volatility currency pairs. Such pairs are renowned for their etoro review stability, thus serving as a reliable foundation for crafting investment strategies geared toward risk aversion and long-term value preservation. The forex market, ever dynamic and full of potential, is increasingly attracting traders interested in exploring the benefits of stable forex pairs. These pairs, characterized by low volatility, offer a haven for risk-averse traders and contribute to a well-rounded trading portfolio. The primary advantage of engaging with stable pairs is the ability to minimize forex trading risk while maintaining an efficient and structured approach to market entry and exit. For investors seeking stability in the forex market, identifying low risk currency pairs is a crucial step.

And, the lower the volatility of the currency pair is, the lower the risk is. For example, while GBPJPY appears significantly more volatile than USDJPY, analytical tools, like Bloomberg’s calculator, can help clarify these comparisons. High volatility presents risks, such as substantial potential losses, but also rewards due to rapid price movements. It shows the least pips that the price of each currency pair can reach. I knew a handful of them such as EUR/USD or GBP/USD and I’d just been familiar with the crazy GBP/JPY.

This behavior makes the Swiss franc more stable and less volatile than other currencies. Additionally, the Swiss National Bank has implemented various policies to maintain the value of the Swiss franc, making it a more stable currency. The Swiss franc is considered the least volatile currency pair due to multiple reasons. As of August 31st, the least volatile pairs are USD/CAD, EUR/GBP, and EUR/CHF. The westernfx average daily range for currency pairs came to my mind a few months after I started forex way back. The reason that I wanted to know that was I didn’t know how to set the size of TPs and SLs for different currency pairs because I didn’t know the personality or volatility of most of them.

EUR/CHF (Euro/Swiss Franc)

These pairs allow traders to engage with the market while minimizing their exposure to the often unpredictable currents of forex volatility. By understanding which pairs have historically shown less volatility, investors can craft a more secure and measured trading approach. Quantifying market volatility is a complex task, essential for effective trade planning and risk management.

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By trading less volatile pairs, traders can limit their exposure to sharp price movements and avoid the risk of sudden losses. This approach is particularly useful for conservative traders or those who are new to forex trading and wish to build experience without taking on excessive risk. EUR/USD is the most popular and traded Forex pair, noted for its low spreads and stability, making it suitable for beginner traders. The pair benefits from predictable movements influenced by economic data, with central bank policies that avoid unexpected changes.

Forex Average Daily Range

While some traders thrive on the adrenaline rush of highly volatile pairs, others prefer a calmer, more predictable environment. If you’re someone who values stability over chaos, understanding the least volatile currency pairs is essential to your Forex journey. Due to the wild swings in price when trading the most volatile currency pairs in forex, it is important that you make allowance for these wild swings in such a manner that your account is protected.

How to Trade Most Volatile Currency Pairs Vs. Least Volatile Pairs

Actually, the reason I started to think about this issue was when I stumbled upon the crazy one. I couldn’t understand why I got beaten by that over and over the first day I tried it, so I decided to learn about the volatility and personality of major and minor currency pairs. Let’s say Iwant to calculate the average daily range for one year which is somethingbetween 260 to 263 candles. There are gaps between this range of candles thatare part of the movement of that currency pair so you shouldn’t eliminate orignore them. They are like invisible candles that do affect the market and makehigher timeframes’ candles or bars along with the visible ones. Liquidity is a measure of the volume of trades in a financial instrument or asset.

This analysis highlights the daily time frames of ten currency pairs, utilizing exponential moving averages to assess price fluctuations over four periods. Among major currency pairs, the least volatile and most stable are EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, GBP/JPY, EUR/JPY, and USD/CAD. Typically, more volatile currency pairs exhibit higher daily percentage changes because of significant fluctuations in exchange rates. Major pairs, known for their high liquidity and trading volumes, often show frequent price changes. In contrast, low volatility currency pairs, such as EUR/CHF and EUR/CZK, experience smaller daily ranges (20-40 pips) and are more suitable for traders seeking predictability. Among the top ten pairs, the USD/SGD is the least volatile with an average of under 4 pips.

Generally, forex pairs with high volatility tend to have wider price movements and fluctuations over a given time frame. This can be caused by various factors, including economic events, political developments, and market sentiment. Conversely, forex pairs with low volatility tend to have more stable and predictable price movements.

When you buy a currency pair, you’re betting that the bdswiss review base currency will go up in value against the quote currency. These currencies have either a positive or negative relationship with one another. For example, the USD/EUR pair belong to the ranks of correlation pairs. USD/TRY, USD/ZAR, or USD/HUF are high-volatility because they have low liquidity, but also due to the inherent risk in emerging economies.

We suggest you connect with a reputable forex broker to help guide your trading activities and provide professional advice on all crucial aspects. In reality, the scope of extraordinary pairs’ developments is a lot more extensive than that of the significant ones. Nonetheless, such high instability is an aftereffect of low liquidity, and trading the low liquidity currency pairs conveys specific dangers for a trader. Overall forex is a game of purchasing and selling currencies in combination.