Volatiilne

Volatiilne is an Estonian adjective meaning volatile. In general use it describes something that changes rapidly, is unstable, or tends to vaporize under normal conditions. The term can apply to physical substances as well as to abstract phenomena, including markets or political situations.

Etymology: The word derives from Latin volatilis, meaning flying or easily vaporizing, and has entered many European languages with a similar sense of rapid change or ease of evaporation.

In chemistry: A volatile substance evaporates readily at room temperature due to high vapor pressure and a relatively low boiling point. Examples include many solvents such as acetone and ether. Volatility affects handling, storage, and safety, since volatile substances can produce flammable vapors and odors and may pose inhalation hazards.

In finance and economics: Volatility refers to the degree of variation of a financial instrument’s price over time. It is commonly quantified by the standard deviation of returns and is often annualized. Higher volatility signals greater uncertainty and risk, while lower volatility implies more stable prices. Market volatility can be driven by changes in supply and demand, macroeconomic news, or geopolitical events, and tools like the VIX are used to gauge it.

Other uses: In everyday language, volatiilne can describe unstable or unpredictable conditions, such as volatile markets, volatile political climates, or volatile prices for commodities.

See also: volatility, volatiilsus (the corresponding noun form in Estonian).