Volatility is how much and how quickly prices move up and down.
It is often measured by the VIX, an index of expected S&P 500 volatility over the next 30 days, derived from options prices and sometimes called the 'fear gauge'.
Why it matters to you
Higher volatility means bigger swings in your account; it often spikes when markets fall.
FAQ
What is Volatility?
Volatility is how much and how quickly prices move up and down.
What is the VIX?
The Cboe Volatility Index, which estimates expected stock market volatility over the next 30 days from S&P 500 options prices.
