Glossary

Volatility: meaning, example and why it matters

How much and how quickly a price moves up and down. Higher volatility means larger swings in either direction.

Worked example

Stock A moves about 1% a day and stock B about 3%. A ₹1,00,000 holding typically swings about ₹1,000 a day in A and ₹3,000 in B. The numbers describe the size of moves, not their direction.

Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.

Why it matters

Volatility is how much a price swings, which affects how large losses and gains can be over a short time.

Related terms

52-week high and lowRiskometer

See it in practice

Position size calculator

Frequently asked questions

Is high volatility the same as high risk?

Often it is used as a measure of risk, but it counts upward and downward moves alike and does not capture every kind of risk.

Is this page investment advice?

No. Volatility is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.

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Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.