// Definition
Volatility is how much and how quickly price moves up and down.
Explained simply
A highly volatile market moves a lot in a short time; a low-volatility market moves slowly in a narrow range. Crypto is generally more volatile than stocks or forex.
High volatility means bigger potential gains but also bigger swings against you, so stop-losses and position sizes need to account for it.
Tip
When volatility rises, reduce position size so the money at risk stays the same.
For education only, not financial advice. Trading is risky and you can lose money.