volatility
31Volatility Swap — A forward contract whose underlying is the volatility of a given product. This is a pure volatility instrument allowing investors to speculate solely upon the movement of a stock s volatility without the influence of its price. Thus, just like… …
32Volatility Quote Trading — A method of quoting option contracts whereby bids and asks are quoted according to their implied volatilities rather than prices. Used mainly by sophisticated investors, volatility quotes benefit those investors who trade upon volatility rather… …
33volatility quote — An alternative means of quoting options, or combinations involving options, by bidding or offering the implied volatility. Any transactions quoted in volatility terms will be translated into price terms for clearing purposes by means of a… …
34volatility skews — In statistics, the skew is the difference between an actual distribution and a benchmark (usually lognormal) distribution. Volatility skew most commonly refers to the difference in implied volatility between out of the money puts and calls. LIFFE …
35Volatility risk — The risk in the value of options portfolios due to the unpredictable changes in the volatility of the underlying asset. The New York Times Financial Glossary …
36volatility risk — The risk in the value of options portfolios due to the unpredictable changes in the volatility of the underlying asset. Bloomberg Financial Dictionary …
37volatility trade — Delta Neutral trades where options and their related futures contract are transacted simultaneously in an options contract. Designed primarily for professional users who wish to take a specific trading view on the level of ( implied) volatility… …
38Volatility risk/exposure — A treasury term for exposure to a change in the volatility of the exchange rate, irrespective of the direction of the movement …
39Volatility Skew — Occurs when an out of the money option is traded at an implied volatility which is significantly different from that of a corresponding at the money option. The net result of this situation is that the market perceives that the out of the money …
40volatility index — /vɒləˈtɪlɪti ˌɪndɛks/ (say voluh tilitee .indeks) noun Stock Exchange a measure which provides an estimation of the expected volatility of certain asset classes, commodities or currencies over a nominated period, based on option prices. Abbrev.:… …
