Understanding Volatility in Slots
Slot machines and online slots are all different in terms of the prizes available and how often they pay. The frequency in which slots payout is known as the volatility. It refers to the risk factor involved when it comes to playing – how often you can expect to win or lose.
Although both are important when it comes to defining a slot, return to player (RTP) is different to volatility. Both will be explained in this article, but most of the focus will be on understanding volatility.
Defining slot volatility
Also known as slot variance, volatility refers to the frequency at which payouts occur and how the prizes are spread in terms of size. This can be loosely broken down into three categories, although slots often fall somewhere in between.
Knowing the difference between low, medium, and high volatility slots will help you to understand which one to choose based on your preference for risk and reward.
Low volatility – Low volatility slots typically pay out smaller wins, but with more frequency than high volatility games. You’re unlikely to hit a huge win and even the top prize might not be life-changing. On the flip side, these slots offer a steady pace and are much gentler on your bankroll. It’s a lower risk with less potential reward.
High volatility – High volatility slots payout much more lucrative top prizes, often offering lucrative but rare bonuses and jackpots. On the other hand, the frequency that wins occur is much lower and the smaller prizes may not even match your bet. For slots players, high-volatility games are all about the excitement of hitting big prizes. They are high risk, high reward.
Medium volatility – Medium volatility games aim to strike a balance by offering the best of both worlds. The prizes tend to be large and the payouts come fairly often. There might not be any huge jackpots, but top prizes will be large. If you fall somewhere in the middle of wanting to hit big but also conserving your bankroll and playtime, medium volatility slots are for you.
How is volatility different to RTP?
Volatility is different to return to player (RTP). RTP refers to the amount they can expect to get back on average when they wager on the slot. This is expressed as a percentage.
For example, if the RTP is 95 percent, the player can expect to get $95 back for every $100 wagered. Online slots are more competitive when it comes to RTP. For example, online slots at Bovada typically have an even more generous RTP in the high 90s.
Volatility refers to how this wager is typically returned. A high volatility slot returns bets to players in the form of rare but significant payouts. Low volatility slots return the bets with lots of small wins. Just like in business, higher volatility means more risk.
It’s important to remember that both volatility and RTP are measured over thousands and thousands of spins. Anything can happen in a single session.
Signs of volatility in slot games
RTP has to be visible on slot machines and online slots games, so it’s easy for the player to work out the percentage by taking a look at the specs of the game. Volatility is not always so clearly displayed, but it can be seen on slot review pages.
Players can also work out volatility for themselves, at least roughly, by looking at the payout tables and features of a slot game. Here are some of the factors to look out for:
- Check the paytable – Slots will always display the payouts for when symbols hit. If there is a huge difference between the top prize and other prizes on offer, the slot is likely to be high volatility. If most payouts are more than the original bet but not huge, it’s likely low volatility.
- Number of symbols matched – The same goes for the number of symbols matched. A low volatility slot won’t have dramatic differences between hitting three, four or five of a kind, with payouts spread quite evenly. High volatility slots usually payout very little for three of a kind, but will pay much bigger prizes for five of a kind.
- Bonuses and jackpots – Low volatility slots usually don’t rely on jackpot prizes or bonus rounds, instead paying steadily for matched symbols. High volatility slots will payout less for regular wins, but will usually offer multiplier bonuses or jackpot prizes. Players won’t hit them often, but when they do they can be life changing.
- Maximum payouts – Look at the maximum payout for the slot compared to the stake. If the maximum payout is huge, this will usually mean the returns are locked up in the top prizes. This makes the game higher volatility.
What volatility level is right for you?
When it comes to RTP, it’s fair to say that you should aim to play higher percentage, that is, high-risk games. They objectively offer the best returns. With volatility, the situation is a little different. It’s all down to preference and what you want out of the slot.
The following considerations will help you to choose the right volatility level:
- Goals – When you play slots, what are you looking to achieve? If you want the opportunity to win big, high volatility slots are where the biggest prizes can be found. If you’re looking to maximize play time and minimize risk, look for lower volatility games.
- Bankroll and risk – Bankroll management is important in real money gaming. Higher volatility games can cut through your bankroll quicker because you can make many spins without winning a prize. Lower volatility games payout more steadily and so tend to be softer on your bankroll. Consider your funds and level of risk aversion.
- Personal preference – Players don’t just choose slots based on volatility or even RTP. There’s also the theme and gameplay to consider. Which slot games you play will ultimately be based on personal preference.