Volatility refers to the degree to which prices fluctuate up and down in the  market over a specific period.

For example, if a stock price rises from ₹100 to ₹120 and then falls to ₹85 within a week, it is considered highly volatile.

How to Understand :

Volatility shows how unpredictable or risky a price or market is. High volatility means big  price changes; low volatility means prices stay steady.

Importance :

It helps investors assess the level of risk associated with an investment.

Volatility is crucial for determining the best times to enter or exit trades.

It impacts the overall stability of an investment portfolio.

Understanding volatility is important for planning safer and smarter investment  strategies.