โ Glossary ยท Risk and markets
Volatility
How strongly a price swings. High volatility means large moves in both directions.
Volatility measures how far a price usually strays from its average. A volatile share can rise 5 % one day and fall 6 % the next; a calm one often moves only about 1 %.
Volatility is not the same as risk but closely related: the more a security swings, the larger interim losses can get and the further away a sensible stop has to be. A 10 % drop is notable for a calm share and almost routine for a coin.
