price volatility
Cost instability measure
Price volatility is the degree to which prices fluctuate over time.
High volatility means rapid, unpredictable swings; low volatility suggests stability.
The term appears most often in financial contexts—stock price volatility, oil price volatility—where it measures risk and uncertainty: Investors fled to bonds amid increased price volatility in the equity markets.
- futures contractsAgreements to trade later
- standard deviationSpread around the mean
- liquidityConvertibility to cash
- varianceSpread around the mean
- hedgingNoncommittal maneuvering
supply and demand · diversification · market speculation · export tariffs · risk premium · panic selling · economic cycles · stress testing · trade imbalances · commodity trading · oil prices · stock market · arbitrage · currency devaluation · market sentiment · boom and bust · moving average · instability