DexLadder Open the app

Volatility

How much and how fast an asset's price moves, usually measured as the standard deviation of returns.

Last verified 13 September 2026 · written by the DexLadder team

What it means

How much and how fast an asset's price moves, usually measured as the standard deviation of returns.

Why it matters when you trade

Volatility sets the natural width of your stop, the safe amount of leverage and the honest size of your position. Ignoring it is how traders place a 2% stop on an asset that routinely moves 6% in a day and then conclude they were "stopped out by noise" — the noise was measurable in advance. It also clusters: violent days follow violent days.

Worked example

A token with 5% daily volatility will breach a 3% stop by chance frequently; the same stop is rarely touched on a 0.8% asset.

See it on live markets

DexLadder runs volatility against live market and pool data, with simulated capital, so you can watch it act on an order instead of reading about it — no account, no wallet, nothing installed.

Related terms

← Every term in the glossary

Open the free Web3 desk — no account, nothing to install