Volatility
A measure of how much the price of an asset fluctuates over time. Higher volatility means larger price swings and is associated with greater uncertainty and risk.
Related terms
Related lessons
What Is An Option?
A first-principles guide to options: the right but not the obligation, calls and puts, strike and expiration, what drives the premium, the crucial buyer–seller asymmetry, and the real risks of leverage.
What Is A Debit Spread?
A detailed guide to the debit spread — a defined-risk options strategy that buys one option and sells another to cut cost and cap both loss and gain. Construction, payoff maths, a full worked example, and when to use it.
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