| A measure of a securitys propensity, compared to other securities, to go up and down in price. A volatile share is one that has a tendency to move sharply through a wide share price range. Mathematically, this is expressed as the average standard deviation of daily price change from the average. In general, high volatility means high unpredictability, and therefore greater risk Ñ but also greater opportunity to make money. Generally speaking, the higher the volatility of a share, the higher the price of option/warrants on the share will be. Historical volatility is a measure based on past performance while implied volatility is derived from the price of an option.
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