Definition
How much and how fast prices swing. Realized volatility measures past swings; implied volatility is what options prices expect.
The story
A calm day might see the S&P 500 move a few tenths of a percent. A volatile one sees moves of 2% or more, sometimes in both directions in the same afternoon. Big data releases and Fed days are when volatility tends to show up.
Why you'll see it
High volatility usually comes with uncertainty.
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We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms