Implied volatility (IV) is a market's forecast that is often used to help traders determine the correct trading strategies ...
With the rise in volatility within markets, it is important to understand what implied volatility is and how it can be used as a tool when it comes to trading. According to the CFA institute, implied ...
Bollinger Bands (BB): These bands consist of three lines: a simple moving average (the middle band) and two standard deviation lines (upper and lower bands) plotted above and below it. Average True ...
Realized Volatility is a key financial metric that measures the historical price fluctuations of an asset, typically a stock, currency, or commodity, over a specific period. Unlike implied volatility, ...
Volatility is a term used to refer to the variation in a trading price over time. The broader the scope of the price variation, the higher the volatility is considered to be. For example, a security ...
According to the CFA institute, implied volatility is a measure of the expected risk with regards to the underlying for an option. The measure reflects the market’s view on the likelihood of movements ...