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Volatility
How sharply a price moves up and down over a period.
Example
One game card stays near $10 all month. Another rises from $10 to $16, falls to $7, then ends at $11. The second price moved much more.
How it fits in
Volatility describes the path of a price, not every form of investment risk. A volatile holding may recover, while a stable-looking holding can still default, become hard to sell, or lose buying power. The measurement also depends on the period and price data used. Pair it with permanent loss, liquidity, inflation, concentration, and goal shortfall checks.
Where this is taught
Related terms
When the money you earn from saving starts earning its own money on top.
Interest paid only on the original amount, never on the interest you have already earned.
Needs are the things that keep you safe and well. Wants make life nicer. Mixing them up is what empties most budgets.
