Jumps

Jumps in finance refer to sudden, significant changes in the price of an asset over a short period. Unlike regular, gradual movements, jumps represent unexpected shifts caused by news, events, or market reactions. They can indicate increased uncertainty or new information impacting the market's perception of value. Recognizing jumps helps investors understand market volatility better and manage risks more effectively. Essentially, jumps are sharp, rapid price moves that stand out from typical day-to-day fluctuations.