Volatility refers to the degree of fluctuation or variability in the price of a financial asset over a specific period of time. It is a measure of how much the price of an asset changes, either up or down, relative to its average price. Assets with high volatility tend to experience large price swings, while assets with low volatility tend to have more stable prices. Investors and traders often use volatility as a key indicator to assess the level of risk associated with an asset, and to help inform their investment decisions.
By monitoring and analyzing volatility trends, market participants can identify potential opportunities and risks, and adjust their strategies accordingly.