{"id":179078,"date":"2021-05-03T13:28:00","date_gmt":"2021-05-03T17:28:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/glossary-terms\/volatility\/"},"modified":"2025-09-22T10:14:32","modified_gmt":"2025-09-22T14:14:32","slug":"volatility","status":"publish","type":"glossary-terms","link":"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/volatility\/","title":{"rendered":"Volatility"},"content":{"rendered":"\n<p>A statistical measure of the distribution of returns for a specific security or market index. Volatility can be measured by using the standard deviation or by the variance between returns from the same security or market index. Typically, the higher the volatility, the riskier the security. A high volatility indicates that a security&#8217;s value can potentially be spread out over a larger range of values, meaning that the price of the security may fluctuate dramatically over a short period of time in either direction. A low volatility indicates that a security&#8217;s value does not change dramatically, but changes in value steadily over a period of time.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"700\" height=\"1225\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/ibkr-infographic-Vix-700x1225.jpg\" alt=\"VIX volatility index infographic\" class=\"wp-image-227944 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/ibkr-infographic-Vix-700x1225.jpg 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/ibkr-infographic-Vix-1100x1925.jpg 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/ibkr-infographic-Vix-300x525.jpg 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/ibkr-infographic-Vix-768x1344.jpg 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/ibkr-infographic-Vix-878x1536.jpg 878w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/ibkr-infographic-Vix-1170x2048.jpg 1170w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/ibkr-infographic-Vix-scaled.jpg 1463w\" data-sizes=\"(max-width: 700px) 100vw, 700px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 700px; aspect-ratio: 700\/1225;\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-tws-volatility-lab\">TWS Volatility Lab<\/h4>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"700\" height=\"471\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/vol-lab-700x471.png\" alt=\"\" class=\"wp-image-225800 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/vol-lab-700x471.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/vol-lab-1100x740.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/vol-lab-300x202.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/vol-lab-768x517.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/vol-lab.png 1430w\" data-sizes=\"(max-width: 700px) 100vw, 700px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 700px; aspect-ratio: 700\/471;\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>TWS Historical Volatility<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"700\" height=\"472\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/vol-historical-700x472.png\" alt=\"\" class=\"wp-image-225802 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/vol-historical-700x472.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/vol-historical-1100x742.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/vol-historical-300x202.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/vol-historical-768x518.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2021\/05\/vol-historical.png 1430w\" data-sizes=\"(max-width: 700px) 100vw, 700px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 700px; aspect-ratio: 700\/472;\" \/><\/figure>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A statistical measure of the distribution of returns for a specific security or market index. Volatility can be measured by using the standard deviation or by the variance between returns from the same security or market index. Typically, the higher the volatility, the riskier the security. A high volatility indicates that a security&#8217;s value can potentially be spread out over a larger range of values, meaning that the price of the security may fluctuate dramatically over a short period of time in either direction. A low volatility indicates that a security&#8217;s value does not change dramatically, but changes in value steadily over a period of time.<\/p>\n","protected":false},"featured_media":227944,"parent":0,"template":"","meta":{"_acf_changed":false,"footnotes":""},"traders-glossary":[13251,13259],"class_list":{"0":"post-179078","1":"glossary-terms","2":"type-glossary-terms","3":"status-publish","4":"has-post-thumbnail","6":"traders-glossary-trading-alphabet","7":"traders-glossary-trading-terms-v"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Archives Term | IBKR Glossary | IBKR Campus<\/title>\n<meta name=\"description\" content=\"A statistical measure of the distribution of returns for a specific security or market index.\" \/>\n<meta name=\"robots\" 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