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UK//ˌvɒl.əˈtɪl.ɪ.ti//US//ˌvɑː.ləˈtɪl.ɪ.ti//

Meaning of Volatility

The degree of variation in a trading price over time.

In simple words: How much something changes quickly and unpredictably.

Volatility in a sentence

  • The volatility of the stock market shocked many investors during the crisis.
  • High volatility can lead to significant gains or losses in trading.
  • Volatility in the economy often signals uncertain times ahead.
  • Some commodities experience high volatility due to weather conditions.
  • Investors must be cautious during periods of extreme market volatility.

How to use Volatility

Used in finance and economics to describe unpredictable price changes; often found in professional or academic discussions on markets.

Grammar pattern

countable noun

Memory hint

Think of volatile volcanoes that erupt unexpectedly.

Related words

Collocations with Volatility

  • price volatility
  • market volatility
  • economic volatility
  • high volatility
  • low volatility

Synonyms for Volatility

  • instability
  • fluctuation
  • variability
  • unpredictability
  • changeability

Common mistakes with Volatility

  • Confused with 'volatileness' which is not a standard term.
  • Using as a verb; volatility is always a noun.
  • Misunderstanding its meaning as just 'change' without the unpredictability aspect.

Volatility appears in

Volatility in other languages

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Frequently asked questions about Volatility

What does Volatility mean?

How much something changes quickly and unpredictably.

What is the definition of Volatility?

The degree of variation in a trading price over time.

How do you use Volatility in a sentence?

The volatility of the stock market shocked many investors during the crisis.

Can you give another example of Volatility?

High volatility can lead to significant gains or losses in trading.

What are synonyms for Volatility?

Common alternatives include instability, fluctuation, variability, unpredictability, changeability.

What words go with Volatility?

It commonly pairs with price volatility, market volatility, economic volatility, high volatility, low volatility.

What are common mistakes when using Volatility?

Confused with 'volatileness' which is not a standard term. Using as a verb; volatility is always a noun. Misunderstanding its meaning as just 'change' without the unpredictability aspect.

How do you pronounce Volatility?

US: //ˌvɑː.ləˈtɪl.ɪ.ti//, UK: //ˌvɒl.əˈtɪl.ɪ.ti//. Listen to the audio above to hear native pronunciation.

Is Volatility formal or informal?

"Volatility" is formal, so it fits professional, business, or academic conversations.

When should I use Volatility?

Used in finance and economics to describe unpredictable price changes; often found in professional or academic discussions on markets.