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Volatile

VOL-uh-tile /ˈvɒlətaɪl/

adjectiveC1GREGMATSAT

formalbusinessscientific

Tending to change rapidly and unpredictably, especially for the worse; (of a substance) easily evaporated at normal temperatures.

In finance, it describes assets or markets that experience frequent and significant price fluctuations. It implies instability and unpredictability.

The story behind the word. The word 'volatile' comes from the Latin volatilis, meaning 'flying, fleeting, swift,' which is derived from volare, 'to fly.' It originally referred to things that could fly or evaporate quickly, like spirits or gases. By the late 16th century, it gained the figurative sense of 'fickle' or 'changeable,' which evolved into its modern financial meaning of rapid and unpredictable price movements.

Word relationships

Unstable: General term for lacking stability; 'volatile' emphasizes rapid, often dramatic change.
Erratic: Irregular or unpredictable in behavior or movement.
Turbulent: Characterized by conflict, disorder, or confusion; not calm or peaceful.

Stable: Not likely to change or fail; firmly established.
Steady: Regular, even, and continuous in development, movement, or amount.
Predictable: Able to be foreseen or foretold.

Commonly confused with

Unpredictable: 'Unpredictable' means simply not able to be predicted. 'Volatile' adds the nuance of rapid, often dramatic, and frequent change, making it inherently unpredictable.

Word family

Volatility (noun): The tendency to change rapidly and unpredictably.
Volatilize (verb): To make or become volatile; to evaporate.

Collocations

highly volatile
volatile market
volatile prices
volatile situation
volatile personality

Example sentences

"The cryptocurrency market is notoriously volatile, with prices often swinging wildly within a single day." Market conditions
"The political situation in the region remains highly volatile, making long-term planning difficult for businesses." Political climate
"Gasoline is a volatile substance, meaning it evaporates quickly and can ignite easily." Chemical properties

Memory hook

Imagine a VOLCANO erupting, spewing lava and ash, showing how quickly and unpredictably things can change, just like a volatile market. VOLCANO erupts unpredictably.

When not to use

Do not use 'volatile' for things that are stable, predictable, or unchanging. It is inappropriate for describing a calm or steady situation.

Fun facts

In chemistry, a 'volatile' compound is one that readily vaporizes at room temperature, like alcohol or ether.