What is volaliteit?

Volatility is a statistical measurement of the degree of variation of price or rate of return of a financial instrument over time. It is a measure of the degree of uncertainty or risk involved in a financial investment, as it indicates how much the price of an asset fluctuates over a given period of time. Higher volatility indicates higher risk, as the value of an asset can change rapidly and unpredictably, while lower volatility is indicative of a more stable and predictable investment. There are different methods to measure volatility, including standard deviation, beta, and implied volatility. Traders and investors often use volatility as a key metric when making investment decisions and risk management strategies.