Market Volatility

Market volatility refers to the rate at which the price of financial assets, such as stocks, bonds, or commodities, fluctuates over a specific period of time. It is a statistical measure that reflects the degree of variation in trading prices and is often expressed as a percentage. High volatility indicates significant price movements, either upwards or downwards, while low volatility signifies more stable prices with smaller fluctuations. Market volatility can be influenced by various factors including economic indicators, news events, market sentiment, and geopolitical developments. Investors often use volatility as a gauge of risk, as assets with higher volatility are generally considered riskier but may also present opportunities for greater returns.