📊 Volatility Isn’t Risk — Liquidity Is

Risk is not volatility. Volatility is just a statistical deviation. But true risk? It’s the permanent loss of capital or forced liquidation in illiquid conditions. Yet most portfolios are optimized for volatility metrics like standard deviation or beta — While ignoring latent liquidity traps that manifest in downturns. 🔍 Professionals hedge volatility. Experts hedge liquidity.