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Volatility


Volatility refers to how quickly and widely prices go up and down in the  market .

For instance, if a stock price changes from ₹100 to ₹120 and then drops to ₹85  within a week, it is considered highly volatile.

How to Understand :  

Volatility shows how unpredictable or risky a price or market is. High volatility means big
price changes; low volatility means prices stay steady.

Importance : 

It helps investors understand the level of risk they are taking.
Volatility is important for deciding when to buy or sell in trading.
It affects the stability of an investment portfolio.
Understanding volatility helps in planning safer and smarter investments.

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