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How Bumpy Is It?

Volatility is how much a price jumps up and down over time.

The idea

Volatility means how much a price moves around. A calm investment drifts a little each day, while a volatile one might jump up 5% and drop 6% in the same week. Volatility is not the same thing as losing money — a bouncy price swings both ways, up as well as down. Knowing how bumpy something usually is helps you decide whether you could sit through the ride without panicking. 🎢

Words to know

Volatility: How much a price bounces up and down.
Swing: One move up or down in a price.
Calm: Describes something whose price usually changes only a little.
Range: The gap between the highest and lowest price over some period.
Percent change: How big a move is compared with where the price started.

Try it — no account needed

Match each word to what it means.

0 / 4 matched

In the full lesson

1Match the pairs
2Work out the number
3Make the call

Vine has 107 lessons like this one, each written three ways so a 7-year-old and a 17-year-old both get a version that fits.

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