Volatility

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Volatility is the relative rate at which the price of a security or contract moves up and down. Volatility is found by calculating the annualized standard deviation of daily change in price.^[1][2]

A volatile market, contract or security is one whose price tends to fluctuate sharply and regularly.

Resources

• Ways To Turn Volatility Into Opportunity, FT.com, July 23, 2008

References

1. ↑ Glossary. U.S. Commodity Futures Trading Commission. Retrieved on May 9, 2008.
2. ↑ Glossary. CME. Retrieved on July 24, 2008.