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Choppy waters: Volatility explained

June 03, 2021

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What is volatility?

Volatility is the change in price of your investments. In simple terms, it is the up and down movement of the price.
Volatility is typically calculated by the standard deviation, which is a measure of how much the price of an investment has deviated from its average historical value.
A highly volatile investment is one which goes through large price changes over a short period of time. While a low volatile investment is one that goes through small price changes over a similar period of time.

Taking advantage of volatility

Due to the extreme price changes over short periods, highly volatile investments can scare people.
But volatility can also present opportunity if you know how to take advantage of it i.e by buying low and selling high.
Taking advantage of volatility can be time consuming because you would have to constantly monitor your investment.

Crea8 has your back

Automated orders can be a life-saver in taking advantage of volatility or keeping your investments safe from unexpected volatility.
Crea8 can offer you this with our automated cut-loss and take-profit orders. Read more about it here.
We can also help you determine whether you are suited for volatile or safe investments with our risk tolerance assessment.

Crea8’s Advice

Don’t get taken for a ride!

Let Crea8’s automated solutions monitor your investment portfolio and ensure that you don’t lose out when the market gets choppy.

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