Volatility
A measure of how sharply and how often a price swings, in either direction, over time.
Volatility measures the size and speed of price moves. Crypto is famously volatile: Bitcoin can move 5% in an hour, while a large stock might take a quarter to do the same. Smaller altcoins routinely swing 20% or more in a day.
High volatility is a double edge. It creates the chance of fast gains and the certainty of fast losses, especially with leverage, where a sharp move can trigger liquidation. Traders watch volatility itself as a signal; long calm stretches often precede violent breaks.
Related terms
How easily an asset can be bought or sold near its current price without moving that price much.
LeverageBorrowed money used to control a larger position than your own capital would allow, amplifying gains and losses.
LiquidationThe forced closing of a leveraged position when losses drop its collateral below the required minimum.
CandlestickA chart symbol showing an asset's open, close, high, and low for a given time period.