What is Volatility?
Volatility describes how much and how quickly a price moves up and down over time. High volatility means big, fast swings, while low volatility means calmer, smaller moves. Volatility is often used as a rough measure of risk, since a holding that swings sharply can change in value a lot in a short period.
Why Volatility matters
It is a practical way to feel how bumpy a holding is, which connects directly to how much risk you are taking.
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