Volatility measures how much the price of an asset fluctuates over time. A highly volatile stock can swing 5–10% in a single day. Low-volatility assets (like Treasury bonds) move very little. Volatility is often measured using the VIX index (also called the 'fear gauge') for the overall stock market. Higher volatility means higher risk and higher potential reward.
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Market Navigator Glossary — plain-English definitions of 93+ investing and crypto terms. All content is for educational purposes only and does not constitute financial advice.