fundamentals
volatility
The degree of variation in the price of a financial instrument over time; a measure of risk.
Example
"Cryptocurrency has much higher volatility than government bonds."
💡 Memory Tip
VOLAT-ility — volatile things fly around unpredictably. High volatility = prices jumping all over the place.
Etymology
From Latin 'volatilis' meaning 'flying, fleeting' — prices that fly up and down unpredictably.
Common Misspellings
volatiltyvolatiliyvolaitlityvolatility
Related Terms
See Also
standard deviationVIXmarket