Volatility
Market
Magnitude of price fluctuation over time.
Volatility measures how much an asset’s price varies within a period. Higher volatility implies larger swings and greater risk for traders and protocols.
Frequently asked questions
How is volatility measured?
With statistics like standard deviation or implied volatility from options markets.Why does volatility matter?
It affects risk, position sizing, and liquidation odds. Higher volatility demands smaller sizes.Can I trade volatility?
Yes via options, perps, or structured products. These are advanced and carry high risk.