How to Analyze Volatility in the CFD Market

Wed, 19 Nov 2025 15:29:57 +0000

Volatility is simply the degree of variation in asset prices over time, and in CFD markets, those price changes are very important. Volatility in CFD trading can open up opportunities: bigger price swings can lead to bigger profits, but they also come with more risk. For example, when Silicon Valley Bank went down in March 2023, volatility shot up. Global FX trading (the backbone of many CFDs) hit $7.5 trillion per day in April 2022, up from roughly $5.5 trillion five years earlier. That jump showed how sudden events can shake up markets and create more trading chances.