Difference Between Variance And Volatility In Slots

Anyone that has played slots for a while knows that you might win hundreds of dollars in a session but then lose it all during the next. Slots can give unpredictable results over more traditional casino games such as blackjack or baccarat. When playing these games, your winnings tend to follow a smoother pattern.

Slots have what is known as high volatility and high variance when they’re compared to other traditional casino games. It’s a key part of how all slots work, from www 32red to land-based casinos. Many players use these terms interchangeably, but they do not mean the same thing. Understanding what these terms mean and how they affect the game can make a difference in your enjoyment of slot games in your favorite online casino.

Difference Between Variance And Volatility In Slots

Variance In Slots Games

Variance is a term used to measure the distribution of results over a long period. Statisticians will calculate a statistical average on how often a slots game should pay out. Variance measures how far the results can vary from this statistical average.

Volatility In Slots Games

Volatility is similar to variance in that it measures the distribution of results. The significant difference between the two is that volatility is bound to a specific time period. Volatility is an excellent measure of short-term statistical changes and helps you understand the short-term risks you are running.

Don’t Confuse These With RTP

Difference Between Variance And Volatility In Slots

Slots games are programmed to give an inevitable return to the player (RTP), but each player will have a vastly different experience on the machine.

RTP is not calculated over a few or even a few hundred spins. As determined by licenses, RTP is calculated over thousands of spins, meaning that slot machines continue to be unpredictable, even over long periods. Make sure to distinguish RTP from variance and volatility.

Low Versus High Volatility And Variance In Slots

Not all slots games have the same variance and volatility. It makes sense for the player to recognize the type of game they’re playing, as some games have lower variance while others are highly unpredictable. Understanding what to look for can help you choose a suitable game.

High-variance games usually have large jackpots or many bonus features. Small prizes usually indicate low variance. These pointers may only be accurate for some games but will give you a starting point for your analysis.

If you have limited funds, find games of low volatility and variance, as your money will go further. High-variance games have the potential to chew up your bankroll.

To Wrap Up 

You cannot predict how one individual slots’ playing session will turn out. You may win hundreds of thousands of dollars, but you could also lose a thousand bucks in a few minutes! This unpredictability is what draws many gamblers back time and again. It is why they continue to put in the coins and spin the reels, hoping for a big win. 

You must understand your volatility profile to deal with slots games’ volatility. Choosing the right games means you’ll have a lot more fun playing these games.

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