Volatility

Type

Mathematical code number

Short introduction

Volatility (VOLA) is a measure of the mobility of a security. Volatility indicates the percentage by which the price of a security can fluctuate over a period of one year, based on previous price changes.

Statement

Volatility is a key figure that quantifies fluctuations in a value. The higher the fluctuation, the higher the volatility.

Volatility is also included in the calculation of OS ratios according to the Black/Scholes model.

Formula/calculation

Interpretation

A VOLA of 20% means that this security can fluctuate from +20% to -20%. Like all statistical data, this figure should be treated with caution.

First and foremost, volatility is a comparative value for selecting the security that is expected to have the strongest price movements.

Default setting

• 10 days

Basic trading systems

• None

Related indicators

• none