volatility

Volatility refers to the degree of unpredictability or variation in the price of an asset, such as stocks or commodities. It measures how much the price can fluctuate over a specific period. High volatility means the price can change dramatically in a short time, which can create higher risks and potential rewards for investors. Conversely, low volatility indicates that prices are relatively stable and change only slightly. Understanding volatility helps individuals gauge the level of risk they're facing in their investments and make informed financial decisions.