Investing Dictionary
Risk

What is Volatility?

How wildly a stock's price swings

Full Explanation

High volatility means the stock price jumps up and down a lot. Low volatility means it moves slowly and steadily. More volatile = more risk AND more potential reward.

Real-World Example

Bitcoin is very volatile. A Treasury bond is very low volatility.

Related Risk Terms

Position Sizing

Deciding how much of your money to put in one stock

Risk/Reward Ratio

Comparing how much you could lose vs. how much you could gain

Short Interest

How many people are betting a stock will fall

Short Selling

Betting that a stock will go down

View all Risk terms →

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