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VOLATILITY

v-o-l-a-t-i-l-i-t-y

Noun
Advanced Level
10 Letters

Quick Definition

VOLATILITY refers to the tendency to change rapidly and unpredictably, especially becoming dangerous or out of control, commonly used in finance and chemistry.

Scrabble Points

16

Points in Scrabble

Base tile values • No multipliers applied

Definition & Meaning

VOLATILITY describes the quality of being subject to rapid, unpredictable changes, often with potentially dramatic or dangerous consequences. In financial markets, it measures the degree of variation in trading prices over time. In chemistry, it refers to substances that readily evaporate at normal temperatures. The concept extends metaphorically to describe unstable situations, unpredictable behavior, or rapidly changing conditions in various contexts from politics to personal temperament.Applications of volatility:

  • Financial markets: Price fluctuations measured by standard deviation or VIX
  • Chemistry: Tendency of substances to vaporize (e.g., alcohol, gasoline)
  • Behavioral: Unpredictable emotional states or reactions
  • Geopolitical: Unstable political or social conditions
  • Etymology & Origin

    The word volatility derives from Latin volatilis, meaning "flying, fleeting, swift, transitory," from volare meaning "to fly." The connection between flying and changeability reflects the swift, unpredictable nature of flight. Originally used in the 1620s to describe birds and flying creatures, the chemical sense emerged in the 1680s. The financial meaning developed in the 1860s with modern stock markets. The behavioral sense of "readily changing moods" dates from the 1640s. The root volare also gives us "volatile," "volley," and is related to "velocity."

    Did You Know?

    The VIX (Volatility Index) is known as the "fear gauge" of the stock market

    Cryptocurrency markets typically show 5-10 times more volatility than traditional stock markets

    Mercury is so volatile that it evaporates at room temperature, making it dangerous to handle

    Market volatility tends to cluster - periods of high volatility are often followed by more high volatility

    Usage Examples

    "The volatility in oil prices made it difficult for airlines to plan their fuel budgets."

    "Her emotional volatility made her reactions unpredictable and sometimes concerning to friends."

    Similar Words

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    Letter Analysis

    Letter Distribution

    V (4 pts)
    1x
    O (1 pts)
    1x
    L (1 pts)
    2x
    A (1 pts)
    1x
    T (1 pts)
    2x
    I (1 pts)
    2x
    Y (4 pts)
    1x

    Total base points: 16 (Scrabble)

    Vowels: 4 | Consonants: 6

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