Volatility as a key factor in the functioning of financial markets

the relevance of the study of volatility as a factor in the functioning of financial markets is due to the current conditions of the modern global economy - instability, frequent crises and sharp fluctuations in prices for raw materials, currencies and stocks. In addition, it is necessary to note the change in traditional approaches to the analysis of financial markets due to the development of digital technologies and the increase in the share of algorithmic trading. Accounting for volatility is aimed at a better understanding of the nature of the processes occurring in financial markets and the development of anti-risk financial strategies. This article studies volatility as a key factor in the functioning of financial markets. The goal is to determine the role of volatility in financial markets, its patterns and impact on decision-making by market participants. Methods: theoretical analysis, classification, analogy, systematization, induction and deduction. Results: a systematization of approaches to the study of volatility in financial markets was carried out, a theoretical model was developed that characterizes the relationship of volatility with key factors in the functioning of financial markets. Conclusion: it can be concluded that volatility plays a significant role as a key factor in the functioning of financial markets and has a significant impact on stability, price dynamics and strategic decisions of market participants.

economic development, financial markets, volatility, instability, patterns, model development