volatility
21Volatility (chemistry) — Volatility in the context of chemistry, physics and thermodynamics is a measure of the tendency of a substance to vaporize. It has also been defined as a measure of how readily a substance vaporizes. At a given temperature, substances with higher …
22Volatility risk — in financial markets is the likelihood of fluctuations in the exchange rate of currencies. Therefore, it is a probability measure of the threat that an exchange rate movement poses to an investor s portfolio in a foreign currency.The volatility… …
23Volatility Analysis — Volatility analysis measures the rate of random change in market prices …
24Volatility smile — In finance, the volatility smile is a long observed pattern in which at the money options tend to have lower implied volatilities than in or out of the money options. The pattern displays different characteristics for different markets and… …
25Volatility Arbitrage — Trading strategies that attempt to exploit differences between the forecasted future volatility of an asset and the implied volatility of options based on that asset. Because options pricing is determined by the volatility of the underlying asset …
26Volatility clustering — In finance, volatility clustering refers to the observation, as noted by Mandelbrot, that large changes tend to be followed by large changes, of either sign, and small changes tend to be followed by small changes. A quantitative manifestation of… …
27Volatility swap — In finance, a volatility swap is a forward contract on the future realised volatility of a given underlying asset. Volatility swaps allow investors to trade the volatility of an asset directly, much as they would trade a price index. The… …
28Volatility Skew — The difference in implied volatility (IV) between out of the money, at the money and in the money options. Volatility skew, which is affected by sentiment and the supply/demand relationship, provides information on whether fund managers prefer to …
29Volatility Ratio — A technical indicator used to identify price ranges and breakouts. The volatility ratio uses a true price range to determine a stock s true trading range and is able to identify situations where the price has moved out of this true range. The… …
30Volatility Smile — A common graphical shape that results from plotting the strike price and implied volatility of a group of options with the same expiration date. A volatility smile is used by investors to price options in the foreign currency market and the… …
