Zhu Y.Z,G.F.Zhou."Volatility Trading:What is the Role of the Long-Run Volatility Component?,". The Journal of Finance . 2010Zhou G, Zhu Y (2011) Volatility trading: What is the role of the long-run volatility component? J. Financial Quant. Anal. 47: 273-307....
Volatility is a way of describing how much that price can vary in a period of time. Some investments are extremely volatile, rising and falling by significant percentage values during a single trading day. Others are not volatile at all, maintaining nearly the same price for days or weeks. ...
What Causes Volatility in Particular Stocks? Individual stocks can experience volatility independent of the market at large. Some stocks are known to be more volatile than others, and generally, the lower a stock’s trading volume is, the more volatile it is likely to be. This is because in...
Intraday volatility refers to price swings during the course of a trading day. It reflects the difference between the intraday high and intraday low, divided by the closing price of a security. More definitions Vertical integration Vertical merger ...
Volatility in the securities markets means large swings in price over a short period of time. Technically, volatility is the statistical measure of the security’s possible investment returns. In simpler terms, it is the degree of variation in its trading price over time. If a security has lar...
What Is Futures Trading? Futures are contracts to buy or sell a specific underlying asset at a future date. The underlying asset can be a commodity, a security, or other financial instrument. Futures trading requires the buyer to purchase or the seller to sell the underlying asset at the set...
Volatility is a good shortcut for thinking about risk, but many experts argue it misses out on some important types of risk. Here are a few of the ways it can fall short: Doesn’t capture inflation risk Money in your bank account doesn’t bounce around in value at all, so it has ze...
“For everyday investors, volatility is the price you pay to be invested in the stock market,” Silver said. “But it’s very unsettling when we see big market drops of two to three percent… It’s a little unnerving for people who have their money in 401(k)’s or IRA...
So, commodity trading is the act of buying and selling assets, resources, often raw materials, with monetary value. People may trade commodities over shorter or longer periods of time. Day traders tend to do so online, frequently, and within shorter time frames. They avoid physical commitment ...
Implied Volatility Implied volatility (commonly referred to as volatility or IV) is one of the most important metrics to understand and be aware of when trading options. In simple terms, IV is deter…