Volatility Definition

Volatility refers to the degree of variation in an asset's price over a given period of time.

What is Volatility?

Higher volatility means larger and more frequent price swings, while lower volatility indicates more stable pricing.

Volatility is a key consideration in risk management, position sizing, and options pricing.

A currency pair that regularly moves 1-2% in a single day is considered more volatile than one that moves 0.1%.

Value investing is an investment strategy focused on buying securities that appear undervalued relative to their intrinsic worth.

The VIX is an index that measures expected volatility in the U.S. stock market based on S&P 500 index options.

Volume is the total number of shares, contracts, or units of an asset traded during a specific period.