Welcome
Settings
Policy
COOKIES
We use cookies to give you the best online experience. Strictly necessary cookies are on by default. Additional cookies are off by default. You can choose which of these additional cookies to allow by enabling them on our settings tab.
All the data we collect is anonymous, in accordance with the GDPR.
Your cookie preferences will be stored for one year, but you can modify your preferences at any time by clicking on ‘Cookies’ in our footer.
Analytics
These cookies track what pages are visited on our website, to help us monitor and improve our content.
Cookies
We use cookies from:
- Google Analytics
- Zoom Info
Media
We embed videos and other media hosted by third parties. Cookies help us keep track of what videos are being watched, and allow those third parties to serve you related content on their own sites. The videos will still work if you do not accept cookies.
Cookies
We use cookies from:
- YouTube
- Vimeo
Other
Miscellaneous cookies – currently none from third parties.
Cookies
xxx
Essential
Cookies
Cookie policy
Volatility
Volatility measures the degree of price fluctuations in a market over a specified period. High volatility indicates rapid or unpredictable price changes, while low volatility suggests stable pricing.
For example, crude oil prices can experience high volatility during geopolitical tensions or supply disruptions, impacting trading strategies and risk management.
Volatility is essential for risk assessment, option pricing, and hedging decisions. Traders, analysts, and portfolio managers monitor volatility to anticipate potential gains or losses and to structure derivatives accordingly.
Understanding volatility enables participants to optimize trading strategies, manage exposure to price swings, and make informed investment or operational decisions in dynamic markets.