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Finance · Investment & Markets

Volatility

Noun
US US /ˌvɒləˈtɪlɪti/ GB UK /ˌvɒləˈtɪlɪti/
Finance Investment & Markets intermediate

Definition

The degree of variation in the price of a financial instrument over time.

Visual Reference

Volatility illustration

Detailed Explanation

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Example

Investors use Volatility to evaluate securities and make portfolio decisions.

In Practice

Also known as: Price Fluctuation, Market Swings. Closely related to Risk, Beta.

Video Explanation

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Case Study

Volatility - key concept in Investment & Markets.

Word Usage

Risk assessment; Options pricing; Portfolio management

Finance Investment & Markets

Use Case

Applied in Investment & Markets contexts: Risk assessment; Options pricing

Also Known As

investment-markets

Synonyms

Price FluctuationMarket Swings

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