Direct from the desk of Dane Williams.
Forex currency pairs that move at least 100 pips a day will offer you enough volatility to make serious money trading them.
There are forex currency pairs that make 100 pip daily moves and I’m here to help you find them.
Remember that as a forex trader you will never be able to take all of any given move.
That is you won’t be able to buy the exact bottom and sell the exact top because doing so just isn’t realistic.
All you can do is try to take as much of a move as possible.
So by revolving your strategy around pairs that move 100 pips a day, you give yourself the best chance of taking enough of the move to make your living trading forex.
With that being said, let me try to answer the question and give you some forex currency pairs to trade.
What is volatility and why is it important to a trader?
Volatility in forex trading refers to the fluctuations in the price of a currency pair over a specific time period.
It indicates how much and how quickly the price of a currency pair can and does change.
Volatility is an essential concept for you as a forex trader to understand because it directly impacts trading decisions and risk management strategies.
Without volatility, you would find yourself in a stagnant market, devoid of significant price movements that limits your opportunities to make money.
Volatility provides the essential momentum needed for you to capitalise on price changes by executing your strategy.
If you’re seeking significant price movements, forex currency pairs exhibiting higher volatility are inherently more appealing as they offer the potential for achieving 100 pip moves within a single day.
In essence, all traders rely on volatility as the lifeblood of your trading career, as it fuels the moves and fluctuations that allow you to play this game.
What forex currency pairs move 100 pips a day?
Certain currency pairs have the potential to move 100 pips or more within a single trading day.
While movements of this size are not guaranteed daily, they are influenced by various factors such as market volatility, economic events and any geopolitical developments unfolding during that day.
We all know that forex currency pairs exhibit their own personalities, but which ones actually move 100 pips a day?
Well, among the majors, pairs like EUR/USD, GBP/USD and USD/JPY are known for their liquidity providing predictability.
According to their average daily ranges of approximately 80-120 pips, all will offer 100 pips a day under the right conditions.
Additionally, currency crosses like GBP/JPY and EUR/JPY are renowned for their heightened volatility and although they offer less predictability, each offer average daily ranges of much more than 100 pips (GBP/JPY – 120-200 pips, EUR/JPY – 90-150 pips).
If you’re really keen on trading the most volatile pairs, the exotics featuring currencies of emerging economies such as USD/TRY and EUR/ZAR, will give you the best chance of seeing the most significant price movements.
I’m talking Highly variable average daily ranges of 150-300 pips depending on their pair and what is going on in that particular crazy part of the world on any given day.
Again, just be aware that this heightened volatility isn’t always on the back of liquid moves and therefore slippage can mess with your trading strategy.
Final thoughts on forex currency pairs moving 100 pips a day
Wrapping up, it's important to end on the note that movements of 100 pips a day are not guaranteed across any of these currency pairs.
There is no such thing as a guaranteed outcome in forex and anyone who tells you otherwise is a charlatan.
The best advice I can offer you is to place any of the currency pairs that I’ve talked about here onto your watchlist and take advantage of moves when they come.
Some days they will be big, some days they will be small.
But by watching the pairs that on average give you a 100 pip daily move, you will put yourself in the best position to succeed.
Best of probabilities to you.