Glossary - Market volatility

Description

Market volatility refers to the degree of variation in the price of financial assets over time, often measured by the frequency and magnitude of price movements. Higher volatility indicates larger and more unpredictable price swings, which can increase both investment risk and potential returns.

Alternate Names

  • Standard deviation
  • Risk tolerance
  • Price fluctuations
  • Market risk
  • Asset allocation
  • Diversification