Market Volatility

Market volatility refers to the degree of variation in the price of a financial market over time. It is often measured by the standard deviation or variance of returns and indicates the level of uncertainty or risk associated with a particular security or market index. Higher volatility signifies larger price swings and greater risk, while lower volatility indicates more stable prices. Market volatility can be influenced by various factors, including economic news, market events, changes in investor sentiment, and macroeconomic indicators. Traders and investors often use measures of volatility to assess risk, inform trading strategies, and manage their portfolios.