Volatility is the standard deviation of daily percentage changes in the underlying exchange rate. Volatility is viewed as historic (drawn from a recent period of time), forward-looking (adjusted upward or downward for expected market swings or events), or implied (calculated by being backed out of the market option premium values traded).

Webster Dictionary Meaning

1. Volatility
- Quality or state of being volatile; disposition to evaporate; changeableness; fickleness.
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