If you love spinning the wheels on online casinos, you must have heard the words “volatility” and “variance” being thrown around. While these terms may sound overly technical, understanding what volatility means is crucial for players who want to manage their budget effectively.
It allows them to identify how much risk they are willing to take. Volatility brings forth the risk level tied with a specific game alongside marks for its payouts, both in frequency and value. It forecasts how a particular slot game will behave in terms of its payout rates.
Understanding volatility: high vs low
With volatility, you can evaluate how risk and reward balance out in a game. Let’s analyze the various kinds so you understand how they affect your gaming experience:
Low volatility games
These games offer players smaller wins, but more frequently. In low volatility slots, players enjoy numerous small payouts, which help maintain their bankroll.
However, life-changing wins are rare. These games are ideal for players with smaller budgets who prefer sustained action with consistent returns, or for those who play for fun and entertainment instead of chasing huge rewards.
High volatility games
High volatility games pay out significantly less often, but when they do, the rewards are far richer. Players might experience long periods of no wins at all, requiring a great deal of patience.
However, there is a relatively common chance for substantial, or even life-changing, wins. These games tend to be better suited to high rollers who can afford to lose money, have deep pockets and are seasoned gamblers with much time on their hands.
Medium volatility games
Games of medium volatility retain elements of both extremes. Their goal is to provide small payouts moderately often, along with the exciting chance of significantly larger rewards from time to time. These games are suited to players who wish to have a bit of everything.
How volatility impacts players
Understanding a game’s volatility enables you to make decisions that match your gaming preferences and bankroll management techniques. For budget players, high volatility slots can be particularly brutal during losing streaks, while low volatility slots are much better for stretching a budget and maximizing playtime.
Additionally, personal risk preferences are a significant factor. If you dislike losing streaks or dry periods without wins, then high volatility games are the most frustrating option.
On the other hand, if you enjoy the excitement of a significant win and the risk that comes with it, then high volatility is just the thing for you.
Every level of volatility offers a different set of emotions: low volatility is significant for consistent ‘mini’ rewards. In contrast, moderate to high volatility offers the exhilaration that comes with potentially massive but rare wins.
How to know a slot game’s volatility
Although online casinos or game developers may not openly disclose a game’s volatility level, one can determine it through a couple of methods.
One way is by analyzing the game’s paytable. High-volatility games tend to feature high payouts for certain symbol combinations but show few smaller wins listed.
On the other hand, low-volatility games have many smaller payouts and fewer large ones. Occasionally, developers provide some hints of volatility within the game’s descriptions or info sections.
Another suggestion is to look at reviews, news, and forums, where many slot review sites and player forums discuss volatility levels based on collective player experiences. Ultimately, trial-and-error methods using demo play will also be effective. If, during demo sessions, you notice frequent minor wins, it’s likely a low volatility game. But if sparse wins are substantial when they occur, it’s usually a highly volatile game.
Volatility in relation to specific games
Knowing the volatility of popular online slot games is crucial. Take, for example, the Hot Hot Fruit slot game, which is immensely popular among South African gamblers. Its volatility is often mentioned in reviews. While reviewing Hot Hot Fruit, one would assume that the slot’s attractive features include winning potential. However, realizing that the winnings come with some level of volatility is vital.
High volatility slots are exciting because they can pay out significant amounts, but are only for those players with deep pockets who are willing to wait.
On the other hand, low volatility games are appealing to players with smaller bankrolls, seeking steady payouts. Understanding these differences enables players to maximize their enjoyment while managing risk effectively.
Volatility vs Return to Player (RTP)
Mixing RTP with volatility is a mistake that many people often make. RTP defines the theoretical percentage of a slot machine’s unused money that every slot pays back to players. As an example, out of every 100 dollars wagered on an RTP of 96%, the game would return 96 dollars, on average.
RTP deals with fairness only, while volatility deals with the frequency and size of the payouts. Two casino games could share the same RTP, meaning they would pay out equivalent amounts over a couple of billion spins, but exhibit completely different volatilities. One might pay small amounts frequently and the other large amounts infrequently. Both RTP and volatility are critical for understanding the behavior of a particular slot game.
Conclusion
Volatility in the context of online casino games, specifically in slots, is one of the most important features to note. It puts things into perspective, allowing you to effectively manage your finances and your money for the game.
Low, medium and high volatility games provide ample opportunity for you to choose games that correspond to your risk tolerance. Informed choices will cater to responsible gambling while simultaneously increasing the overall entertainment value.