Common use of Volatility risk Clause in Contracts

Volatility risk. Volatility risk is associated with the price fluctuations of a security. Volatility is considered high when a security experiences significant price movements over a relative time period, whether it's daily for some types of instruments or longer for others. The risk of volatility is calculated based on the average difference between the lowest and highest prices of a financial instrument over a specific period.

Volatility risk. Volatility This is the risk is associated with linked to the price fluctuations movements of specific prices of a security. Volatility is considered high when a if the security experiences significant price is subject to wide movements over a relative time period, whether it's period (ie daily for some types of instruments or instrument and longer for others). The risk of volatility is calculated based on the basis of the average difference between the lowest prices and the highest prices of a financial instrument over a specific given period.