The measure of fluctuation in an asset’s value from the mean. Volatility can be historical (over a time period) or implied (momentary). The higher the volatility, the greater the risk but the higher the potential gain or loss.
The measure of fluctuation in an asset’s value from the mean. Volatility can be historical (over a time period) or implied (momentary). The higher the volatility, the greater the risk but the higher the potential gain or loss.