Volatilitybhav kitna aur kitni tezi se hilta hai

Volatility is the size of price movement over a period, regardless of direction. A stock that moves 3% a day is more volatile than one that moves 0.5%. Historical volatility is measured from past prices, often as the standard deviation of returns; implied volatility is what option prices expect for the future. Volatility rises during results seasons, policy events and panics, and it tends to cluster: a wild day is more likely to be followed by another wild day. For a trader, volatility sets how wide a stop loss needs to be and, through position sizing, how many shares to hold. A ₹10 stop on SBI is reasonable when its daily range is ₹12, and hopeless when the range is ₹40. Volatility is not the same as risk, but high volatility with large size is how accounts get destroyed quickly. ATR and India VIX are two ways to measure it.