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Ratios & Metrics
Volatility
Definition
The degree of price variation over time, typically measured as the annualised standard deviation of returns. Higher volatility increases option premiums and short-selling risk.
Related Terms
Beta
A measure of a stock's volatility relative to the broader market (e.g., S&P/ASX 200). Beta of 1 moves with the market; >1 is more volatile; <1 less. High-beta names often attract heavier short interest.
Implied Volatility
The market's forward-looking estimate of a stock's volatility, derived from option prices. Elevated IV signals expected price swings — useful for sizing short positions and timing squeeze setups.
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