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More glossary terms
- JOLTS (job openings and labor turnover survey)
- Earnings per share (EPS)
- Nasdaq composite
- Unit
- Value investing
Volatility definition
Volatility is how much and how quickly an investment’s price goes up and down. The more dramatic the swings, the higher the volatility.
What is volatility?
Volatility is how much and how quickly an investment’s price goes up and down. The more dramatic the swings, the higher the volatility.
Some investments, like stocks, tend to be more volatile – prices can jump around daily based on news, earnings reports, or market sentiment. Others, like government bonds, are usually less volatile and tend to be more stable over time.
Volatility isn’t necessarily a bad thing – it can create opportunities for investors to buy assets at lower prices. But it also means more uncertainty, which is why volatility is closely linked to investment risk.
Investing glossary
It's important you know
Capital at risk. All investing should be for the longer term. The value of your investments can go up and down, and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future.
A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Payments you make into your pension won’t be accessible until the minimum pension age (currently 55, increasing to age 57 from 2028). Tax treatment depends on individual circumstances and may be subject to change in the future.