What Is Volatility – and Should You Fear It?
jul 23, 2026
Volatility is a statistical measure of the rate and magnitude at which the price of a financial asset, such as a stock, index, or bond, rises and falls over a given period. It indicates how widely prices deviate from their average. In this article, you will learn what volatility really means, why it happens, how it differs from the risk of permanent loss, and how investors can interpret it more confidently.