What is volatility?
If you are an avid casino player, you have probably come across the term volatility. But what does it really mean? In this article, I sort out everything you need to know about volatility – including what it means and why it is important when you are looking for list of the best online slot machines.
The story behind volatility
Volatility is initially an economic term that has been used for a long time in the financial world. The term is used to describe how the value of e.g. stocks vary over time. Nowadays, this term has spread to other industries, including the casino and gaming industry. Here, however, it is used to give you as a player an idea of what your chances of winning will look like versus the risk. Let me explain…
As you are probably aware, there are now thousands of different slot machines, all of which are designed in different ways. Among other things, they contain a variety of functions and bonus games, while they are based on different game mechanics and consist of varying numbers of reels.
All these variations mean that the probability of when winnings will take place (and also the size of these) can vary greatly from slots to slots. It is also this variation that volatility is intended to describe. That is, whether your chances of winning will look like the risk you take by playing on a specific slot machine.
Slot machine volatility – one explanation
Let me take this a step further and explain even more in depth what is meant by slot machines and their volatility. As previously mentioned, volatility is meant to describe your chances of winning versus risk. More precisely, it explains how your gains and losses may vary over time.
If we play with the idea that you are playing on a slot machine with high volatility, this means in practice that you take a big risk and will probably lose a large part of your bets in the short run. On the other hand, this is compensated by the fact that on certain occasions you can come up with really large winnings.
If, on the other hand, you play on a slot with low volatility, the risks are less. However, it is also the potential gains. It is often said that slot machines with low volatility generate more but smaller profits. In other words, your chances of winning at these slots are greater.
If we imagine a graph that shows gains and losses, then slot machines with high volatility will show high peaks but also deep valleys. On the slots with low volatility, neither the peaks nor the valleys are the same size.
Pros & cons of high volatility slots
A major advantage of the highly volatile slot machines is, of course, the potential winnings, which can amount to tens of thousands or hundreds of thousands of kronor, and several million, respectively. The associated excitement that this brings is also a great advantage for the gaming experience, which is exciting to say the least.
The biggest disadvantage of these slots, however, is that the big wins occur very rarely. This means that you will probably need to spend more money before you can count on any profits. Which in turn means that you should have a slightly larger budget if you plan to play slots with high volatility.
If you want to try your luck at high-volatile slot machines, I recommend you take a look:
Pros & cons of low volatility slots
The low-volatility slot machines also offer many advantages and disadvantages. The main advantage is that in the short term you have good chances of winning, albeit smaller sums. During the game, you can also expect more frequent wins. This means that low-volatility slots are ideal for you who have a smaller budget and want to be able to enjoy a longer gaming session.
Not entirely unpredictable, the biggest disadvantage of low-volatility slots is that the opportunities to win really big winnings are limited. Usually these slot machines offer maximum winnings of 500-1000x times the bet, which is not bad in itself. On the other hand, there is nothing that can compare with the maximum winnings of the highly volatile slot machines, which can exceed 10,000x the bet.
If you want to try your luck at low-volatility slot machines, I recommend you take a look:
High or low volatility slots?
So, which of the two should you play on? Slot machines with high or low volatility? In the end, this is up to you. Do you prefer to risk more to have the chance to reap really big wins or are you content to win smaller amounts more frequently? A good tip is to try both high and low volatility slots to find the alternative that is best for you!