volatility

/ˌvɒləˈtɪləti/

rapid and significant price fluctuations

The cryptocurrency market is known for its extreme volatility.

This means its prices can change drastically in short periods.

Finance

technical

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

Stock market volatility increased during the economic crisis.

Prices swung wildly as investors reacted to uncertainty.

Often measured using statistical metrics like standard deviation.

general

The tendency of a system or process to experience sudden, unpredictable changes.

Political volatility can disrupt long-term planning.

Frequent policy changes create uncertainty for businesses.

Used in contexts beyond finance, such as politics or technology.

Collocations

market volatilityfluctuations in financial marketsprice volatilityrapid changes in asset pricesvolatility indexa measure of market risk (e.g., VIX)

tendency for volatility to persist over time

pattern in options pricing

Volatility is often measured by the VIX index in stock markets.

Use 'volatility' for rapid, unpredictable changes, not gradual trends.

From Latin 'volatilis' (flying, fleeting) + '-ity' (state of being).

In finance, volatility is often quantified using statistical models. In general usage, it describes unpredictability.

volat

flying, fleeting

root

-ility

state of being

suffix

English Dictionary