What is volatility in slots games?
The will to gamble is a part of the millions of years of evolutionary processes that have led humanity all the way from its inception, up until the present moment. Many people feel that gambling is a vice in and of itself, but when faced with the fact that gambling in its core essence has led us to some of our greatest achievements as a species, then they start to get a little stumped.
And of course, the thousands of casinos around the world are a testament of how popular gambling really is, and they are created in order to exploit this human propensity for gambling.
Now, the fact of the matter is that there is variability in how big of a risk-taker some people are. While it’s true that the will to gamble is present in every human being in some form or another, there are differences in the degree of willingness to gamble.
Some people are hardcore gamblers, and to them life’s nothing without taking risks. They bask in gambling whenever possible, and they find extreme satisfaction in it.
On the other hand, there are people that are highly risk-averse. These people are the ones that are sometimes afraid to leave home because of the risks that the outside world poses to them, even though these risks are extremely negligible to most normal people. And most people are in between these two extremes, in the so-called grey area.
Now, how does this tie up to the subject of this article? Well, for one thing, slot machine designers have recognized this difference in the attitudes among the gambling population specifically. And they have used this information to create slot machines that are more tailor-made for certain types of people along the risk-taking willingness spectrum.
This comes in the form of the so-called machine volatility. One of the first uses of the term “volatility” has been to explain some aspects of the world of financing. And this term encompasses the statistical measure of the degree of dispersion of the returns of a security.
This may seem like a complicated definition, but we assure you, it is not. If you implement the term “volatility” in the field of gambling, you get the definition that volatility the degree of risk or uncertainty concerning the size of the changes in the player’s bankroll value.