What is 'Volatility'?

1. A statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security.

Sharper Insight. Smarter Investing. Manage Preferences TERM OF THE DAY Volatility Volatility is a statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security. Breaking it Down: In other words, volatility refers to the amount of uncertainty or risk about the size of changes in a security's... Read More Related to "Volatility" The Investopedia Anxiety Index The Investopedia Anxiety Index (IAI) is a gauge of investor sentiment based on the behavior of 20 million Investopedia readers around the world. Read More Tracking volatility When market volatility spikes or stalls, the VIX (the CBOE Volatility Index) is a benchmark index designed to track S&P 500 volatility. Learn how VIX is calculated. Read More How To Profit From Volatility We explain four key strategies to profit fom volatility in markets. Read More Related Definitions Implied Volatility - IV The estimated volatility of a security's price derived from an options pricing model. Read More International Beta Better known as "global beta", international beta is a measure of the systematic risk or volatility of a stock or portfolio in relation to a global market, rather than a domestic market. Read More VIX - CBOE Volatility Index The ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market's expectation of 30-day volatility. Read More Volatility Swap A forward contract whose underlying is the volatility of a given product. Read More You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe  |  Manage Subscriptions Investopedia, LLC, A Division of IAC. 114 West 41st St, floor 8, New York NY 10036 Copyright © 2018, Investopedia, LLC. All Rights Reserved Follow Us: