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Analysis

Volatility — definition & meaning

How much and how quickly a price moves over time.

Volatility measures the size and speed of price swings. A volatile market moves sharply; a calm market drifts slowly.

Volatility is not the same as direction — a market can be highly volatile while going nowhere overall. Higher volatility means bigger potential gains and bigger potential losses, so many traders adjust position size to it.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

Related terms

Average true range (ATR)
An indicator that measures how much an instrument typically moves.
Volume
The number of units traded over a period — a gauge of activity.
Drawdown
The drop from a peak to a trough in your account value.
Position sizing
Choosing how large a trade to place based on your risk per trade.
Support
A price level where buying has tended to stop a decline.
Resistance
A price level where selling has tended to stop an advance.

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