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Volatility is the relative rate at which the price of a market or financial instrument moves up and down. In other words, it is a statistical measure of the tendency of a market price or financial instrument’s price to rise or fall sharply within a period of time.
In a highly volatile market, prices can move sharply up or down and in a short period of time. If prices hardly change or move very slowly, a market is said to have low volatility and increased stability.
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