Definition of

Fluctuation

Finance

The idea of ​​fluctuation is used in the field of economics and finance.

From Latin fluctuatĭo , fluctuation is the act and consequences of fluctuating . This verb refers to oscillation (increase and decrease alternately) or to hesitate . The concept has different applications according to the context .

In the field of finance , fluctuation is the monetary loss that occurs due to the reduction of a certain quantity of merchandise or the updating of stock. This is the difference between what the inventory books reflect and the real (physical) existence of the goods .

The concrete and material loss of the products is known as shrinkage , while the fluctuation is linked to the monetary loss due to said variation. The fluctuation reflects in money, therefore, the difference between what one has and what one should have according to inventories.

Types of fluctuation in finance

It is possible to distinguish two main types of fluctuations. Regular fluctuation , also known as cyclical fluctuation , occurs when there are seasonal periods (stages of growth follow periods of contraction). Irregular fluctuation , on the other hand, is determined by modifications that are not periodic and that are due to alterations that are not common.

Changes in the foreign exchange market are also known as fluctuations. The concept, in this case, allows us to name the changes in the value of a currency in comparison with another or others. This fluctuation usually depends on the central banks of each country, political actions and the current state of international trade.

Surf

The movement of a body due to sea waves is known as fluctuation.

The concept in physics

In the same way that the term fluctuation is used in the economic and business field, it is also used in the physics sector. In this case, the concept in question can be defined as the difference that exists between what is the normal value of a quantity and its instantaneous value.

In addition to this new meaning, the word we are addressing is also part of a broader term known as quantum fluctuation, which refers to the change in energy that occurs at a specific point in space and at a time. determined and temporary.

This last concept, it must be said, is closely linked to what is the uncertainty principle, also known as the Heisenberg indeterminacy relation. In 1927, the German physicist who gave him his name proceeded to formulate what made it clear that it is impossible to simultaneously measure the linear momentum and the position of a particle.

It must be emphasized that this principle has become one of the basic pillars of quantum theory. So much so that he, and specifically his aforementioned formulator, won the Nobel Prize in Physics in 1932.

Fluctuation due to waves and how I hesitate

Likewise, we must not forget that fluctuation is a concept that is used to define the movement that a body experiences in time with the waves.

Lastly, fluctuation is known as the hesitation that causes a person to hesitate and not resolve a situation.