Watch out when a situation becomes volatile — it is likely to change for the worse suddenly. If you and your best friend have a volatile relationship, you Vocation · Voracious · Volume · Volition. A measure of risk based on the standard deviation of the asset return. Volatility is a variable that appears in option pricing formulas, where it denotes the volatility. Volatility definition, evaporating rapidly; passing off readily in the form of vapor: Acetone is a volatile solvent. See more. Three Ways to Play a More Volatile My bet world Industry". Neue Wörter awareable noun July 17, Historic volatility is derived from time series of past market prices. This time, they were afraid of slowing growth in China. And in scientific language, a volatile oil evaporates quickly. The volatility of a stock relative to the overall market is known as its beta, and the volatility triggered by internal factors, regardless of the market, is known as a stock's alpha. How volatility is measured will affect the value of the coefficient used.