Volatility
How much and how fast a price swings up and down.
Volatility describes the size of the bumps along the way. High-volatility investments jump around a lot day to day; that movement is normal, not a sign something's broken. Over long horizons, the calmest thing an investor can do is expect volatility and keep holding through it.
Explain it to your kid
"How much a price jumps up and down."
Want to go deeper? What to tell your kid when the market drops.
Related words
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