Volatility

This Issue in United States

Concept of Volatility in Futures Trading

In this context of financial law, the following is a definition of Volatility: A statistical measurement (the annualized standard deviation of returns) of the rate of price change of a futures contract, security, or other instrument underlying an option. See Historical Volatility, Implied Volatility.

Vega

Concept of Vega in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The measure of volatility in option theory.

Resources

See Also

• Derivatives Contract

Volatility

Concept of Volatility in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The variability of movements in a security or underlying instrument’s price. It is a measure of the amount by which an asset’s price is expected to fluctuate over a given period of time. It is normally measured by the annual standard deviation of daily price changes.

Resources

See Also

• Derivatives Contract