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Executions can be overlooked by both novice and experienced traders especially during volatility.
Volatility is a hot topic for financial educators, traders, and investors. If you are unfamiliar with the term, it refers to a scenario where market prices rapidly rise and drop within a very short period. Depending on their trading or investing style, some skilled or even professional traders may actively avoid or choose to trade during volatility. Although potential rewards may be more significant during volatility, the risk increases exponentially.
Although there is no direct correlation between volatility and execution, trying to open a trade while prices are moving rapidly can lead to price differences between what a trader expects and what they get. It’s like trying to hit a rapidly moving target with a ball, something that’s relatively challenging. In the best-case scenario, your trade may open at a more beneficial rate. In the worst-case scenario, your trade opens at a rate that causes unforeseen losses or yields a smaller return than intended.
Exness helps traders mitigate this by filling their orders at the best market price available at the given moment. Thanks to a robust infrastructure of strategically located servers worldwide, their order execution* is both fast and reliable.
What causes volatility?
Several factors fuel volatility, but in simple terms, it occurs when traders are unsure about an event, news item, or political occurrence that will affect the markets. Here’s a more specific breakdown of these factors.
News
Information can come from any source, but as long as it reaches an audience of market participants likely to spread market-moving news, that information can have an impact. These include traditional financial media like Forbes, Bloomberg, and the Wall Street Journal, as well as social media and trading communities like those on Discord.
Geopolitics
During the beginning of 2025, the new US administration waffled on tariffs. The enacted ones triggered retaliatory tariffs from the targeted countries, resulting in volatility as markets feared a rapid increase in inflation. Another example is the frequently unfulfilled promises of regulations during the early years of cryptocurrencies going mainstream. These caused the price of the potentially targeted tokens to fluctuate wildly.
Macroeconomic events
Most countries release reports and make announcements regarding various factors affecting their economies. They can cover industrial output, interest rates, and gross domestic product (GDP). Most of these reports and announcements, or at least the most impactful, have forecasts based on current market conditions and previously released reports. If the announcement doesn’t match these forecasts, it can cause volatility, especially if the mismatch is unexpected.
Corporate events
Announcements on earnings, cash flow, income statements, changes in equity, or even the public’s reception of a newly announced or released product can cause market volatility.
Exness execution and volatility
Exness offers reliable execution that allows traders to respond to market movements in real time*. They also offer tight and stable spreads**, giving traders the ability to trade high-impact market news while keeping costs low, and order execution precise.
The broker also offers unique added protections like 0% Stop Out***, a proprietary feature that helps delay or avoid stop outs, as well as Negative Balance Protection. This allows traders to navigate volatility with more confidence.
