Volatility and risk are closely related, but they are not the same thing. Risk refers to the potential for loss, while volatility refers to the degree of fluctuation in the value of an asset. Generally, higher volatility is associated with higher risk because there is a greater chance that a...
Option premiums depend, in part, on volatility because an option based on a volatile asset is more likely to go into the money before expiration. By contrast, the price of a low-volatile asset varies within tight limits, meaning that an option based on that asset will likely go into the ...
The CBOE Volatility Index (VIX) reflects the expected volatility of the whole market over the next 30 days. It is referred to as the “fear gauge,” meaning that it signals how confident or cautious investors are about the upcoming market developments. The VIX uses the prices of a basket o...
Both of these are labelled as market neutral, meaning, you're not bias in either direction regarding price movement. But both of these strategies require the underlying stock to stay within the upper bounds of the strike selection. If the earnings numbers are a huge surprise to the market ...
Volatility Index (VIX) has been called a market leading indicator by many yet we seldom see any working trading model based on the index available online. This example model shows you what can be done with VIX. It is based on VIX only meaning that it is completely price independent. ...
4. Hot Forex 5. IFC Markets Volatility 75 Index on MT4 and MT5 Platforms If you want to trade the Volatility 75 Index using the Metatrader 4 or the Metatrader 5 platforms, we have good news for you. All the brokers presented above feature both the MT4 and the MT5 platform, meaning that...
Generally this model is written in the form σt2 = ω + αrt2−1 + βσt2−1 (2.23) This is a more convenient form to use when estimating the parameters but it is used at the expense of a nice interpretation for the meaning of the first term. Now the long-term variance is ...
i write as a form of due diligence, meaning that this is a part of my research process. as a result, i have a personal incentive for well-researched coverage.for more in-depth coverage, including valuations with buy/sell targets, newsletters, and more, check out my marketplace service...
The essence of the concept is closely related to the meaning of drawdowns and drawups: the collection of directional changes following each other can be interpreted as the alternating sequence of drawdowns and drawups. The frequency of price changes in physical time does not play any role in ...