degree of fluctuation in the price or return of a financial instrument or index over time. Historical Volatility is the “backward-looking” estimate of average fluctuation of prices around the average, similar to the standard deviation of a price or index level. Implied Volatility is the market’s “forward-looking” estimate of average fluctuation as reflected in the price of Options on an underlying share or index.
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is a comprehensive glossary of hedge fund slang, legal and regulatory terminology, and acronyms.
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