Part 2

What Is Volatility?

You may have a negative connotation of the word volatility, and for a good reason. But what is volatility, really? It is usually in the common parlance most often when things are bad or expected to be soon. It’s an emotive word, but not necessarily in the financial context all the time, believe it or not. However, the word’s official definition doesn’t mean bad, or emotional. In finance, volatility is a less loaded term that simply means the change in price over a given amount of time.

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The VIX Series
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