Price Volatility

Price volatility refers to how much the price of an asset, like stocks, commodities, or currencies, fluctuates over a period of time. When prices change rapidly and unpredictably, the asset is considered highly volatile. Stable prices, on the other hand, show little movement. Volatility can be caused by various factors such as economic news, political events, or market sentiment. It’s an important measure for investors because high volatility can present both opportunities for gains and risks of losses. Essentially, volatility reflects how much and how quickly prices are moving, helping investors assess uncertainty and potential profitability.