• (noun): The trait of being unpredictably irresolute.
    Example: "The volatility of the market drove many investors away"
    Synonyms: unpredictability
    See also — Additional definitions below

Some articles on volatility:

Sources of Model Risk - Uncertainty On Volatility
... Volatility is the most important input in risk management models and pricing models ... Uncertainty on volatility leads to model risk ... that products whose value depends on a volatility smile are most likely to suffer from model risk ...
Local Volatility
... A local volatility model, in mathematical finance and financial engineering, is one which treats volatility as a function of the current asset level ...
Strangle (options) - Strangle Premium
... It indicates how much above the at-the-money volatility the two out-of-the-money strangle volatilities are ... The strangle premium is a measure of the curvature of the volatility smile ... maturity, the 25 strangle premium is where is the volatility of the put with the strike chosen to give a delta of -25% ...
Examples of Model Risk Mitigation - Parsimony
... The existence of a 'volatility surface' is one such adaptation ... But they find it preferable to fudge one parameter, namely volatility, and make it a function of time to expiry and strike price, rather than have to precisely estimate another." However, Cherubini and Della Lunga ...

More definitions of "volatility":

  • (noun): The property of changing readily from a solid or liquid to a vapor.