Risk Management

Beta

Definition

A measure of an asset's volatility relative to the overall market. Beta >1 means more volatile than the market; <1 means less volatile.

Example

A stock with a beta of 1.5 tends to move 50% more than the market in either direction.

Explore More

Learn Trading with SignalPro

518 trading terms, 311 lessons, and AI-powered signals — all free to start.

Download Free