Volatility quantifies price dispersion using metrics such as standard deviation or implied volatility from derivatives markets. Higher volatility signals greater uncertainty and risk, influencing position sizing and hedging decisions for SORA participants.
Volatility
EconomicsA measure of how widely an asset's price fluctuates over a period of time.
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Definition
Volatility quantifies price dispersion using metrics such as standard deviation or implied volatility from derivatives markets. Higher volatility signals greater uncertainty and risk, influencing position sizing and hedging decisions for SORA participants.