Volatility And Risk

Risk is unpredictable and uncertain. It’s the possibility or probability of suffering loss because of the factors that affect the overall market performance, whereas, volatility is the variation in the value of a security and the risk of high degrees of dispersion in the magnitude of securities

Overall, we can summarize that volatility is a measure of how much prices change over time and is often used to measure risk. volatility is the variation in the value of a security and the risk of high degrees of dispersion in the magnitude of securities.

When we discuss investments such as investment in assets like property, stocks, etc. we come around with different terms. Similarly, one of the terms which are related to investment is Volatility. So, what is Volatility? The word ‘Volatility’ means the quality or state of being volatile. It means the propensity to change quickly and unpredictably. Volatility is a term used to describe the fluctuation of prices within financial markets. It is a measure of how much prices change over time and is often used to measure risk. When prices are volatile, it means that they are changing rapidly and unpredictably.

Volatility is usually expressed in form of percentages. An increase in volatility means an increase in the chances of making quick money or losing as well.