By: Editorial Team, StoneX Media
Periods of calm are often mistaken for safety, but low volatility can quietly undermine trading performance. As markets lose momentum and direction, traditional signals weaken and patience is tested. Heading into 2026, subdued price action is reshaping how risk is expressed and managed. The challenge is no longer surviving swings but identifying when stagnation becomes costly.
Alex Ridgers, StoneX Global Head of Retail Dealing, examines how subdued volatility is altering trading behavior and forcing sharper decision-making.
Low volatility narrows trading ranges and removes the urgency that often drives decisive positioning. Ridgers points to the dollar as a clear example, noting that dollar index volatility is close to its lowest level since 2021. This reflects a market that has largely accepted stability and stopped reacting to incremental news. As he observes, “the markets have almost ignored the dollar”.
In quiet markets, conviction alone rarely delivers results without precise execution. Ridgers argues that capital tied up in non-moving trades carries an unseen opportunity cost that grows over time. His approach emphasizes flexibility, explaining that “if you're sat in a stock that is just going to stagnate, get out of it”. He believes that the ability to exit quickly and redeploy capital becomes the defining edge when volatility stays low.
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Sign Up See our financial videos hub--- Written by Gus Farrow, Senior Manager, StoneX TV
--- Expert: Alex Ridgers, StoneX Global Head of Retail Dealing
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