Volatility

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    Volatility in financial markets describes the degree of variation in an asset’s price over a given period. It reflects how rapidly or unpredictably prices move and can manifest in both mild, steady fluctuations within a defined range or in sharp, abrupt swings upward or downward. While moderate volatility often signals a stable and functioning market, extreme volatility can indicate uncertainty, investor anxiety, or rapid shifts in supply and demand dynamics—making it both a risk and an opportunity, depending on how it’s managed.