Volatility refers to the degree of variation or fluctuation in the price or value of a financial instrument, such as stocks, bonds, commodities, or currencies, over a specified period, reflecting the level of uncertainty, risk, and price movement in the market. Volatility is measured by statistical indicators, such as standard deviation, variance, or beta, and is commonly expressed as a percentage or annualized figure, representing the magnitude of price swings or deviations from the mean or expected value. High volatility implies greater price fluctuations and market uncertainty, indicating higher risk and potential rewards for investors, while low volatility suggests stability, predictability, and lower risk levels. Volatility can be caused by various factors, including economic indicators, geopolitical events, market sentiment, investor behavior, corporate earnings announcements, and changes in interest rates or monetary policies, influencing asset prices, trading volumes, and investor confidence. Volatility plays a crucial role in investment decision-making, portfolio management, and risk assessment, affecting asset allocation, trading strategies, hedging techniques, and derivative pricing in financial markets. Investors may use volatility as an opportunity to capitalize on price movements, implement volatility trading strategies, or hedge against market risk, depending on their investment objectives, risk tolerance, and market outlook.