Price fluctuations are referred to as volatility. The greater the gap between the highest and lowest price in a period, the greater the volatility. In financial trading, a distinction is made between historical volatility, which is calculated from past price movements, and implied volatility. Implied volatility is the expected volatility in the future. In recent years, the volatility of commodities has increased significantly, leading to a greater need for price hedging and risk management in companies.
