Glossary · from the DESK dictionary
Volatility
A statistical measure of how much a security's price fluctuates over a specific period, typically expressed as the annualized standard deviation of returns.
In plain words
Higher volatility typically means larger price swings and therefore higher short-term risk.
What it means for traders
A central practical concept in risk analysis and options valuation.
Common pitfalls
A purely statistical measure that reveals nothing about the direction of a price move.
Related terms
Historical Volatility (HV) · Risk
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.