Risk and Performance Metrics
Volatility
How much and how quickly prices move up and down over time.
Also called: price swings, market swings
What it means
Volatility describes how much the price of an investment changes. A highly volatile investment may swing sharply in either direction over short periods. Lower volatility usually means price changes are smaller or more stable, though that does not automatically mean safer in every sense.
Why it matters
Many people confuse volatility with permanent loss. Understanding the difference helps users think more clearly about risk.