Volatile assets refer to assets with relatively large price fluctuations in the market. The prices of these assets are often unstable and may fluctuate due to market changes, policy adjustments, company performance and other factors. Common volatile assets include stocks, futures, foreign exchange and digital currency.

Unstable assets will bring opportunities and risks. On the one hand, due to the fluctuation of market prices, investors can get high returns by trading volatile assets. On the other hand, the price fluctuation of volatile assets has great uncertainty, and investors need to face risks such as lock-in, loss and plunge. Therefore, investors need to carefully assess their risk tolerance and rationally allocate assets.

The price fluctuation of volatile assets can be used for risk management. For example, some institutional investors will adopt hedging strategies to reduce market risks. Hedging refers to trading long and short positions at the same time in the volatile asset market, and gaining income through price changes between long and short positions when the market fluctuates. Hedging aims to protect the portfolio from market fluctuations and risks.

In short, volatile assets, as an important asset type in the market, have the characteristics of high risk and high return. For ordinary investors, it is necessary to rationally allocate assets according to their own risk tolerance and investment objectives to avoid risks and losses caused by market fluctuations.