What is Volatility?

Measuring the magnitude of asset price swings

Volatility refers to how much the price of something moves up or down over a period of time.

High Volatility: Prices change frequently, with rapid and large swings. High risk and potentially high reward.
Low Volatility: Prices move slowly and steadily, offering a more predictable environment. Important: Volatility only describes the magnitude of price movement, not the direction of the trend.