Volatility: meaning, definitions and examples

Often used in finance and economics to describe the degree of variation in trading prices or economic variables. It suggests rapid and unpredictable change.

• The stock market's volatility makes it risky for short-term investors.
• Due to its volatility, the cryptocurrency market can yield high returns, but also substantial losses.

Used to describe situations where lack of consistency or reliability creates a sense of insecurity. It often carries a negative connotation.

• Political instability can hinder economic growth.
• Mechanical instability in the system caused frequent outages.

Commonly used in general contexts to describe variations over time. It suggests regular or irregular ups and downs without immediate judgment on risk.

• Temperature fluctuations are common during spring.
• Currency exchange rates experience daily fluctuations.

A broad term used to convey a general lack of predictability or known outcomes. Often applied in professional, personal, and economic contexts.

• The uncertainty of the job market makes long-term planning difficult.
• There's uncertainty about the effectiveness of the new policy.

Best used when discussing sudden and extreme changes, especially in prices, markets, or emotions. It often implies an inherent risk or unpredictability.

• The stock market experienced high volatility this week
• His volatile temper makes it hard to predict how he will react

This word is appropriate when talking about situations lacking consistency or permanence, often leading to potential problems or danger. It has a slightly negative connotation.

• Political instability in the region has caused widespread concern
• The bridge has structural instability and needs immediate repairs

Use this when referring to regular yet unpredictable changes that can go up and down over time. It is often used in financial, environmental, or health contexts.

• There have been significant fluctuations in temperature this month
• Currency fluctuations can impact international travel costs

Choose this word when describing a situation where the future outcome is unknown or unpredictable, often causing anxiety or cautious behavior.

• There is a lot of uncertainty about the outcome of the election
• Economic uncertainty can lead to reduced consumer spending