In finance, volatility refers to the degree of variation in the price of an asset over time. It is a statistical measure that quantifies the amount of uncertainty or risk associated with a particular asset or market. The higher the volatility, the more unpredictable and unstable the price movements of an asset are, which can lead to significant fluctuations in value. Volatility is often used as an indicator of risk in investment analysis, and it is commonly measured using metrics such as standard deviation, beta, or the volatility index (VIX).