Market basics
What is Volatility?
Hinglish mein padhein: Volatility kya hoti hai?
Volatility measures how much and how quickly a price moves. Higher volatility means bigger swings in both directions.
It is often measured with the standard deviation of returns or with the Average True Range. India VIX shows expected Nifty volatility over the next 30 days.
Volatile stocks need smaller position sizes for the same risk.
Related terms
- India VIXIndia VIX is NSE's volatility index. It estimates how much the Nifty is expected to move over the next 30 days, based on option prices.
- ATR (Average True Range)ATR measures a stock's average daily price range, including gaps, over a set period — usually 14 days. It is a volatility gauge.
- BetaBeta measures how much a stock tends to move relative to the market. A beta of 1.2 means it has moved about 20% more than the index on average.
- Position sizingPosition sizing decides how many shares to buy so that, if your stop-loss hits, you lose only a planned slice of your capital.