Volatility risk

Volatility risk is the amount of risk that comes from changes in the prices of investments. When the prices of investments can change quickly and often and move up and down a lot, it is said to be "volatile", which means there is a lot of risk. That means that you could lose a lot of money in a very short amount of time if you invest in something very volatile! So, when you are choosing investments, you want to know how much risk they have and be careful to choose things that aren't too risky.