Volatility

Even though the rules of gambling seem simple, this world full of entertainment and money has many terms that can confuse players. However, if they become familiar with them, the game can become much clearer and more understandable. For example, volatility helps them weigh the risk of whether to get involved in a game or not, and whether it will even be fun. Moreover, understanding volatility can be useful not only in gambling but also in finance, where volatility is often discussed.

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What is volatility?

Volatility can denote a rise or fall in assets based on their past behavior and development or express the level of risk in investing in a particular asset (in this case, a deposit in a gambling game). Apart from the gambling world, this term is mainly used in finance, where it represents fluctuations in the value of a particular asset over time. However, it doesn’t indicate the direction in which assets are heading but the range within which they move.

Slot machine volatility

While RTP (return to player in the long run) in slot machines is always fixed and expressed as a specific percentage, volatility represents a scale. Each game developer may have this scale set differently. However, players usually encounter a scale of 1 – 100 (slots from Yggdrasil) or 1 – 10 (slots from ELK Studios). If players want to uncover this value, they can find information on the internet, but searching can sometimes be lengthy and challenging, especially if they don’t know exactly what to focus on.

Volatility in finance

In finance, volatility is mainly discussed in connection with investing. Just like in gambling, it also expresses the risk of investment. If assets fluctuate frequently (as is the case with cryptocurrency), there is often talk of high volatility. Conversely, if assets fluctuate only minimally or are stable, this condition is called low or even zero volatility. However, there are several other types of volatility in finance.

How to read volatility from winnings

The easiest thing any player can do is check the payout table before playing. From the information provided, they can get an idea of the game’s volatility. If the payouts are mostly lower, the slot usually has low volatility. Conversely, if the payouts are higher, it is high volatility. However, special bonuses in the form of higher multipliers or free spins complicate matters since the maximum payout is usually only achievable with their help, while lower payouts are much more accessible and players win them more often. Before players start playing for their own money, it is recommended to try the game for free first. Not all establishments offer this option, but many online casinos allow players to try the game in a so-called demo version. Thanks to this, they can get better acquainted with its process and verify their findings about volatility and RTP, as in the game, they play with virtual currency. So they don’t lose real money in case of a loss.

What is the ideal volatility?

Once players learn to read the available information about any game, they gain a certain advantage that can slightly increase their chances of winning but mainly reduce their risk of losing. Volatility is divided into three categories: low, medium, and high. Each of them offers certain advantages and disadvantages, so all players can choose the one that suits them best.

• Low volatility: These games offer their players mostly lower payouts. For players to win a larger sum of money, they must spend much more time playing and have a good winning streak. This variant is ideal for those who play mainly for fun and like to win frequently but don’t crave a huge win.
  • Games with low volatility include: Starburst, Guns’N Roses, Blood Suckers
• Medium volatility: This level is truly the middle ground between low and high volatility. Medium-high payouts, which players can win about as often as they lose. It appears in most slot machines because it is the golden mean that often satisfies players of both extreme categories.
  • Popular slot machines offering medium volatility include: Immortal Romance, Koi Princess, The Wild Chase
• High volatility: The promised payouts can be really high, but they occur much less frequently. In this category, there is a much greater risk that players will spend more money than they manage to win a high reward.
  • The most popular high-volatility slot machines include: Gonzo’s Quest, Dead or Alive, Book of Dead

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