Volatility (finance)

In finance, volatility refers to the degree of variation in a trading price series over time. It is typically measured by the standard deviation of returns for a given security or market index. High volatility indicates that the price of the asset can change dramatically over a short period in either direction, while low volatility implies that the price is relatively stable. Volatility is an important concept for investors and traders because it can significantly influence risk, investment strategies, and market behavior.