Volatility
The degree of variation in an asset’s price over time; higher volatility implies larger and more frequent price swings.
Volatility measures how much and how quickly price moves. Crypto markets are known for high volatility due to 24/7 trading, fragmented liquidity, leverage, and speculative flows.
Common measures include standard deviation of returns, ATR, and implied volatility from options markets.
Related terms
4 linkedExplore connected entries beyond the alphabetical index.
Liquidity
→How easily an asset can be bought or sold in size without causing a large price move.
Leverage
→Borrowed or synthetic exposure that increases position size, amplifying both gains and losses.
Liquidation
→The forced closure of a leveraged position when collateral falls below required margin.
Bear Market
→A prolonged period of declining prices and negative sentiment.
All terms and definitions may update as the Cryptionary improves.
