Volatility
A measure of how much an asset's price fluctuates over time, often expressed as annualized standard deviation.
In-Depth Explanation
High volatility means large price swings—both opportunity and risk. Crypto is notoriously volatile compared to traditional assets. Volatility affects option pricing (higher vol = more expensive options), liquidation risk (volatile collateral needs larger buffers), and impermanent loss severity. 'Vol' is itself tradeable through various DeFi products.
Related Terms
More in Trading & Markets
View all →Slippage
The difference between the expected price of a trade and the actual executed price.
Maximal Extractable Value
MEVValue that can be extracted by reordering, inserting, or censoring transactions within a block.
Sandwich Attack
An MEV extraction technique where an attacker places transactions before and after a victim's trade to profit from the price impact.
Frontrunning
Placing a transaction ahead of a known pending transaction to profit from the anticipated price movement.