The FxFriend Forex Volatility Index is an essential tool for traders who want to understand and capitalize on market movements. Volatility, measured using ATR (Average True Range), tells you how much a currency pair typically moves in pips over a given period. This information is crucial for setting appropriate stop-losses, calculating position sizes, and choosing pairs that match your trading style. Our volatility dashboard displays real-time ATR values and daily pip ranges for over 28 major and minor currency pairs, sorted from highest to lowest volatility. High-volatility pairs like GBP/JPY and GBP/NZD can move 150+ pips per day, offering significant profit potential but requiring wider stop-losses and smaller position sizes. Lower-volatility pairs like EUR/CHF or EUR/GBP typically move 30-50 pips daily, making them suitable for range-trading strategies and tighter risk management. The visual bar chart makes it easy to compare volatility at a glance, with color coding indicating high (red), medium (yellow), and low (green) volatility levels. Understanding volatility also helps you avoid common mistakes: using the same pip-based stop-loss on both a high and low volatility pair exposes you to inconsistent risk. Instead, professional traders adjust their position size inversely to volatility, risking a fixed percentage of their account regardless of the pair traded. Our tool updates continuously during market hours, allowing you to track how volatility changes during different sessions and around major news events.