Volatility (Volatilität)
A measure of how strongly and quickly an investment's price moves up and down.
In short
As of 5 October 2026Volatility measures how strongly and how quickly the price of an investment moves. If stock A usually trades between 45 and 55 euros a year and stock B between 20 and 80 euros, B is much more volatile. Volatility is not the same as a loss: if you stay invested for long, you can sit out temporary swings.
Volatility describes the range of a price's swings. A highly volatile stock makes big jumps up and down; a low-volatility stock moves more calmly.
Example: stock A usually trades between 45 and 55 euros in a year, stock B between 20 and 80 euros. B is far more volatile.
Volatility is not the same as loss. If you stay invested for a long time you can sit out temporary swings. If you need the money soon, less volatile investments make more sense, because selling at a low locks in losses.
Related terms
As of 5 October 2026 · Educational content, not investment or tax advice.