What is 'volatility' in SAP FIN-FSCM-TRM-TM - Transaction Manager?

volatility - Overview

• Component: FIN-FSCM-TRM-TM

• Component Name: Transaction Manager

• Description: A measure of the probability that a value will fluctuate around its mean value over a certain period.

volatility - Details

• 
  Key Concepts: 
  Volatility is a term used in SAP Transaction Manager (FIN-FSCM-TRM-TM) to describe the rate at which a currency or commodity changes in value. It is an important factor to consider when making financial decisions, as it can have a significant impact on the profitability of a transaction.
  
  How to use it: 
  In SAP Transaction Manager, volatility is used to calculate the risk associated with a particular transaction. This risk is then used to determine the appropriate pricing for the transaction. The higher the volatility, the higher the risk and therefore the higher the price.
  
  Tips & Tricks: 
  When dealing with volatile currencies or commodities, it is important to monitor their movements closely and adjust pricing accordingly. This will help ensure that transactions are profitable and that losses are minimized.
  
  Related Information: 
  Volatility is closely related to other financial concepts such as liquidity, leverage, and hedging. Understanding these concepts can help you make better decisions when dealing with volatile currencies or commodities.