Plain-English definitions, reviewed by an independent investor
Volatility
Volatility is how much a price swings up and down over time, usually measured by standard deviation.
Volatility is how much a price swings up and down over time, usually measured by standard deviation.
Volatility ≈ Standard Deviation of Returns
Why it matters
It quantifies risk in plain numbers so you can size positions honestly.
Common confusion
Volatility is backward-looking and can stay calm then spike; it is not a timing tool.
Frequently Asked Questions
Is volatility always bad?
Not for traders who profit from moves, but it raises the chance of regrettable entries.
Beta vs volatility?
Beta is relative to the market; volatility is the asset’s own total swing.