Currency Volatility Calculator
Calculate currency pair volatility using historical data, standard deviation, and Value at Risk (VaR) metrics. Analyze forex market risk for informed trading decisions.
Step 1: Currency & Timeframe
Understanding Currency Volatility
Currency volatility measures the degree of variation in exchange rates over time. Higher volatility indicates greater risk and potential for larger price movements in forex markets.
Step 2: Risk Metrics
About Value at Risk (VaR)
Value at Risk estimates how much a set of investments might lose, given normal market conditions, in a set time period such as a day. A 95% VaR of $1,000 means there’s a 5% chance of losing more than $1,000 in the specified period.
Currency Volatility Results
Annualized Volatility
Currency Pair Volatility Comparison
| Currency Pair | Daily Volatility | Annual Volatility | VaR (95%, $10K) |
|---|
Risk Analysis Breakdown
Volatility Formula
Annualized Volatility = Daily Volatility × √252
To calculate annualized volatility: Multiply the standard deviation of daily returns by the square root of 252 (trading days in a year). This assumes returns are normally distributed and independent.
Need Professional Currency Risk Analysis?
Connect with our forex risk experts for detailed volatility analysis, hedging strategies, and personalized risk management solutions for your currency exposure.
Get Professional Analysis