Volatility measures how much a security's price fluctuates over time. Historical volatility is calculated from past price movements, while implied volatility is derived from options prices. Higher volatility means larger potential gains and losses. The VIX index measures expected market volatility.
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Quick Reference
Category
risk
Difficulty
Beginner
Reading Time
1 min
Related Terms
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Where You'll See This
This concept appears throughout stock detail pages and financial data.