A higher volatility means that a security's value can potentially be spread out over a larger range of values. This means that the price of the security can change dramatically over a short time period in either direction.

What does high volatility mean?

A higher volatility means that a security's value can potentially be spread out over a larger range of values. This means that the price of the security can change dramatically over a short time period in either direction.

Is a high volatility good?

Volatility means how much something moves. High volatility means that a stock's price moves a lot. ... In the long term, volatility is good for traders because it gives them opportunities. Without volatility there would be no trading opportunities and no traders.