If an investment is considered volatile what does it mean?

If an investment is considered volatile, it means that its price can change rapidly and unpredictably over a short period. This high degree of fluctuation indicates a higher level of risk, as the investment can experience significant gains or losses in value. Volatility can be influenced by various factors, including market conditions, economic events, and investor sentiment. Consequently, while volatile investments can offer potential for high returns, they also carry a greater risk of substantial losses.