noun

volatility

/vɒˈlætɪləti/ · say it: vol·AT·il·uh·tee

how sharply and frequently a price moves

In Banking & Finance

In more detail

1. (noun) the quality of being likely to change suddenly and unpredictably

2. (noun) in finance, a measure of how much the price of a stock or asset goes up and down

Examples

1. The volatility of the political situation makes it hard to plan for the future.
2. High volatility in the stock market can make investing risky.

How to use volatility

Volatility describes sudden, unpredictable changes in a system or market. In everyday contexts, it refers to emotional or situational instability; in finance, it specifically measures price fluctuations and is used as a technical indicator of risk. The term is more formal and analytical than 'change' or 'ups and downs'.

Common phrases

market volatility
high volatility
price volatility
volatility index
increased volatility
reduce volatility

Synonyms

instability · unpredictability · fluctuation · turbulence · changeability

Opposites

stability · constancy · steadiness

Word family

volatile (adjective) · volatilize (verb) · volatilely (adverb)

A common mistake

Learners sometimes use volatility to mean simply 'a big change' without implying the unpredictable, sudden nature; volatility requires both frequency of change and difficulty in prediction.

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