Glossary
Volatility
Volatility measures how much and how fast a price moves. Higher volatility means bigger swings — more opportunity and more risk.
Volatility describes how sharply a price moves over time. A highly volatile market makes big, fast swings; a calm market drifts gently. Volatility tends to spike around major news and economic data, and differs by instrument — gold and crypto are far more volatile than major currency pairs.
Higher volatility means more opportunity and more risk: bigger potential gains, bigger potential losses, wider spreads, and more slippage. It can also deepen drawdown.
Manage it with smaller position sizes, a firm stop loss, and caution around news.
Related terms
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