Volatility
Volatility is how much and how quickly a share price or market moves up and down.
Quick reference:
High volatility: Big, frequent price swings. Low volatility: Small, steady price changes.
Risk: Higher volatility = higher uncertainty.
Expanded explanation:
When an investment is volatile, its price can change a lot in a short time. For example, a small mining stock might jump 15% in one day and fall 10% the next. By contrast, a large bank may only move 1 to 2% in a day.
Volatility matters because it affects both risk and opportunity. Some investors look for volatile stocks to make quick gains, while others prefer steady, less volatile investments for stability. Market-wide volatility often rises during times of uncertainty, like economic shocks or global crises.
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