Market basics · Glossary
Volatility
A measure of how much and how quickly prices fluctuate.
Definition and explanation
Volatility describes the magnitude of price changes over a period. Higher volatility can create larger opportunities and larger risks, including wider price swings and increased slippage. Historical volatility describes past movement and does not guarantee future conditions.
Example
If a coin's daily range expands substantially, a fixed stop distance may become less appropriate for its current volatility.
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