Volatility
trading · metrics
The degree of variation in an asset’s price over time; higher volatility implies larger and more frequent price swings.
1.definition
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.
2.measurement
Common measures include standard deviation of returns, ATR, and implied volatility from options markets.
Related terms
Liquidity
→How easily an asset can be bought or sold in size without causing a large price move.
finance · trading
Leverage
→Borrowed or synthetic exposure that increases position size, amplifying both gains and losses.
markets · derivatives
Liquidation
→The forced closure of a leveraged position when collateral falls below required margin.
markets · derivatives
Bear Market
→A sustained market decline accompanied by broadly negative sentiment and reduced risk appetite.
market · trading
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