Volatility 🤪 is a term used to describe fluctuations in prices and the frequency of those fluctuations. When an asset or security is said to be volatile, it usually means it is a riskier investment. Lower volatility means that the price changes are less frequent and less severe.
The VIX or the Chicago Board📋 Options Exchange’s Volatility Index is published to show the expected frequency and extent of change in price over thirty days.
When stocks fall, volatility is usually higher and drops when stocks pick up. Volatility is either measured using calculations of previous prices or based on the price of options
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