Sentence examples for when volatility is high from inspiring English sources

When volatility is high, however, strategic decisions should be treated more like call options.

"It is a common practice and in fact a responsible practice to increase prudency reserves when volatility is high and when prices are rising," she said.

But when volatility is high, like it was last year, and options become expensive, investors need to pay attention to the costs of protection they are buying.

It is trading around the 30 level, or near its peak in March when Bear Stearns had to be rescued.The theory is that, when volatility is high, markets are usually falling.

When volatility is high, overall market risk is also high.

When volatility is high the random fluctuations tend to be larger than when volatility is low.

Option prices rise when volatility is higher, as investors are willing to pay more to protect themselves.

If informed traders earn greater profit when volatility is higher, as they may use privileged information and greater access to resources to capitalise on market volatility, then spreads should increase in response.

Some hedge funds benefited last year when volatility was high, and convertible bonds declined less sharply thant the underlying stocks.

A lack of turnover suggests that a relative amount of complacency has spread, and that's usually accompanied by smaller intraday price ranges; there simply isn't as much disagreement over current prices as when volatility was higher.

"When intraday volatility is high, people lose confidence in the meaning of price," said Robert Schwartz, professor of finance at Baruch College.