Tag: volatility

What is 'Call Ratio Backspread' A very bullish investment strategy that combines options to create a spread with limited loss potential and...

What is 'Quanto Swap' A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on...

What is 'Vasicek Interest Rate Model' A method of modeling interest rate movement that describes the movement of an interest rate as...

Volatility is the variation in the trading prices over a period of time that is calculated with the help of standard deviation or variation...

What is 'Variability' Variability is the extent to which data points in a statistical distribution or data set diverge from the average,...

What is 'Vega' Vega is the measurement of an option's sensitivity to changes in the volatility of the underlying asset. Vega represents...

Definition A variance swap is an over-the-counter financial derivative that allows one to speculate on or hedge risks associated with the magnitude of movement, i.e....

What is 'Vega Neutral' A method of managing risk in options trading by establishing a hedge against the implied volatility of the...

What is 'Fear And Greed Index' An index developed and used by CNNMoney to measure the primary emotions that drive investors: fear...

What is 'Gamma Pricing Model' An equation for determining the fair market value of a European-style option when the price movement on...