Volatility is a measurement of how far the price of a security might move in the future. If there is high volatility, then there should be large swings in price and fast movement. When volatility is low, prices are expected to remain relatively stable. Investors dislike volatility and would rather place their money into a stable market. So when volatility rises, the nervous investor will tend to withdraw money from the share market in favor of a safer investment.
There is a measure of volatility that we can use for the broad market. The India VIX is a measure of implied (future) volatility for the Nifty. The India VIX can… Continue Reading
