Definition of Volatility
The degree of price fluctuation over a given period. High volatility means large price swings; low volatility means small, stable movements. Volatile markets offer more trading opportunities but also carry greater risk.
At a glance
Term
Volatility
URL slug
volatility
Category
General
Short answer
The degree of price fluctuation over a given period.
Deep dives
Full A–Z glossary
Example
Apply the definition: restate “Volatility” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “Volatility” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Volatility” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools:
Related terms
FAQ
The degree of price fluctuation over a given period.
Knowing the precise definition of “Volatility” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “Volatility” as loose slang while your broker/platform specification defines it more narrowly.