# Volatility (finance)

## Degree of variation of a trading price series over time / From Wikipedia, the free encyclopedia

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In finance, **volatility** (usually denoted by "σ") is the degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns.

Historic volatility measures a time series of past market prices. Implied volatility looks forward in time, being derived from the market price of a market-traded derivative (in particular, an option).