Instability, often referred to as volatility, describes the degree of variation in the price of a financial asset over time. High volatility indicates that the asset's price can change dramatically in a short period, making it riskier for investors. This can be seen in markets like stocks or cryptocurrencies, where prices can fluctuate widely due to market sentiment, economic news, or other factors. Volatility is measured using statistical methods, such as standard deviation, which quantifies how much the asset's price deviates from its average. Investors often use volatility to assess risk and make informed decisions about buying or selling assets. Understanding volatility is crucial for effective portfolio management.