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Volatility is the measure of the uncertainty regarding the size of price rate changes in an asset or a market. The higher the volatility is, the more chance bigger changes occur, and the riskier the market is. The volatility is usually measured using standard deviation and indicators that use standard deviation like the Bollinger bands. In binary options volatility plays a significant role in many trading methods. You can learn more about how to use high volatility to your advantage by reading How to trade binary options.

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