Volatility

Volatility means how much and how quickly the price of an asset moves up and down. In simple terms, volatility shows how unstable or unpredictable a price can be. Volatility is important because it helps investors understand risk. When volatility is high, prices can change quickly, and investors may gain or lose money faster. For example, if a stock rises 5% one day and falls 6% the next day, that stock is showing high volatility. Volatility is not always bad. It can create risk, but it can also create opportunities for investors who understand the market.