List of Financial Market Terms

In stock trading, day trading, options trading, and futures trading, volatility is the amount of risk in the magnitude of changes in an instruments value.

Higher volatility means that a value can be spread over a large margin, allowing it to change drastically in either direction. 

Inversely, lower volatility means that value will not change largely, resulting in small fluctuations either direction.

Related terms: VIX, Market Indicators, Market Breadth,  Bull Trap, Bear Trap

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