How Can Brokers Equip Traders to Handle Market Volatility?

FinanceFeeds Editorial Team

The CBOE Volatility Index (VIX), which is considered the barometer of market volatility, spiked to an almost record high of over 65 in March 2020, in sync with the pandemic outbreak. Although the index declined through the rest of 2020 and in 2021, it surged more than 87% in the first half of 2022. VIX is commonly known as the “fear index,” reflecting the fear of uncertainty among investors. 

News of geopolitical tensions, economic slowdowns and changes in government policies can lead to fear of uncertainty, triggering volatility in the financial markets and making traders exit positions or remain on the side-lines till the volatility subsides. During such times, traders need to be motivated and reassured to continue trading. There are a few effective ways to do so.

Providing the Right Set of Tools

Volatility Analysis: Even during long periods of high volatility, there are times when markets are calmer. A tool that offers traders a visual representation of expected volatility in various assets can help them plan their trades when volatility subsides.

Identify Trading Opportunities: Brokers can integrate tools on their site that present exciting trading opportunities, based on deep technical analysis. These can also be shared as trading alerts via email.

Risk Calculator: This enables traders to determine their risk exposure and modify their strategies based on their risk appetite and desired risk-reward ratio.

High Probability Trade Set-Ups: Providing high-probability trade set-ups can help traders easily identify recurring tradable situations in their chosen assets.

Trade Validation: A tool that can highlight the quality of the pricing and execution of a trade can prove highly useful when there is high uncertainty in the market.

Integrating the right set of tools into the website can enable brokers to inspire traders to continue trading during volatility or an overall market decline. 

Continued Communication is Key

Education-Based Content: Sharing relevant and relatable content via email, social media posts and newsletters can reassure and inspire traders. They need to understand that volatility presents more exciting trading opportunities than a flat market, the different strategies for trading during high volatility, and the best risk management techniques to adopt.

Push Notifications: Market commentary and summaries of market analysis can be sent via SMS to traders directly on their smartphones. Enabling traders to monitor their assets and adjust their strategies with ease, anytime and from anywhere, can help them feel much more in control.

Market Reports: Sharing detailed market reports can help traders better understand the workings of the financial markets, choose the right assets and hone their trading skills. These reports can also provide details of major market indicators, upcoming market moving events and expectations for them.

While communication is essential, it needs to be multilingual to address a global clientele. Communicating in a trader’s preferred language can keep the conversation relatable and sensitive. This goes a long way in building trust, which is even more critical during periods of high market volatility.

The fear of uncertainty can make traders extremely nervous. Autochartist offers easy-to-integrate cutting-edge tools that help brokers earn trust and offer traders an edge in the financial markets to encourage them to continue trading. Contact us to learn more.

Read this next

Metaverse Gaming NFT

Mon Protocol and Pixelverse Forge a Groundbreaking Partnership to Revolutionize Blockchain Gaming

Mon Protocol and Pixelverse make history in the annals of Blockchain gaming as they set up the architecture for the melding of their technologies.

Chainwire

Nimiq Pay Launch: A New Standard For Self-Custodial Crypto Payments

Nimiq, the blockchain ecosystem for payments that is designed to make cryptocurrency easy for everyone to use, has taken the first concrete steps towards its goal of becoming the world’s most widely-accepted digital asset for payments with the launch of Nimiq Pay.

Inside View, Interviews

Exclusive: GoMining’s Mark Zalan wants to democratize opportunities of Bitcoin halving

As the Bitcoin community counts down to the upcoming Bitcoin halving, Mark Zalan, CEO of GoMining, shared exclusive insights into how the company is gearing up for this pivotal event in the cryptocurrency world.

Digital Assets

Umoja Partners with Merlin Chain to Launch Revolutionary Bitcoin-Based Synthetic Dollar – USDb

Umoja, an innovative smart money protocol, has embarked on a strategic partnership with Merlin Chain, a leading Bitcoin Layer-2 network, to introduce USDb, the first Bitcoin-based, high-yield synthetic dollar.

Crypto Insider

Bybit Report Highlights Imminent Bitcoin Supply Shortage and Rising Scarcity Post-Halving

Bybit, recognized as one of the top three cryptocurrency exchanges globally in terms of trading volume, has recently published a comprehensive report highlighting the future supply constraints of Bitcoin.

blockdag

BlockDAG Outshines XRP Price Breakout and Uniswap Crypto Forecast with 20,000x ROI Potential and Teaser for Keynote on Moon

BlockDAG has become the latest sensation in the crypto world, which has taken the spotlight by storm, overshadowing even the most optimistic projections for XRP’s price breakout and Uniswap’s crypto forecast.

Digital Assets

Binance announces blockchain courses at European universities

“Education plays a pivotal role in advancing adoption and fostering opportunities as these technologies redefine our future and global economic landscape.”

Fintech, Uncategorized

Kepler Cheuvreux taps Adaptive for new execution equities platform

KCx, Kepler Cheuvreux’s execution division, has partnered with trading technology firm Adaptive Financial Consulting to create a new event-driven trading system based on Aeron and its own Hydra technology.

Chainwire

Bybit Livestream: Thought Leaders from Bybit, OKX and Wintermute on the 2024 Crypto Market Bull Run, April 19. Register and Secure Your Spot Now.

In a post-ETF and BTC halving world, a new era has opened as the infrastructure in the crypto industry has changed tremendously from the last bull run and halving cycle.

<