Volatility Swap

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Dictionary Says

Definition of 'Volatility Swap'

A forward contract whose underlying is the volatility of a given product.
Investopedia Says

Investopedia explains 'Volatility Swap'

This is a pure volatility instrument allowing investors to speculate solely upon the movement of a stock's volatility without the influence of its price. Thus, just like investors trying to speculate on the prices of stocks, by using this instrument investors are able to speculate on how volatile the stock will be.

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'Volatility Swap'

  • CFA Level 1 Study Guide - Derivatives - Swap Markets and Contracts ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/swap-markets-contracts.asp
    ... Forward Rates vs Spot Rates; 14.46 Measuring Interest Rate Risk; 14.47 Price Volatility; ...
    Cash Flows on Put-Call Parity and the Lower Bounds; 15.36 Swap Markets and ...

  • Hedging With Currency Swaps

    http://www.investopedia.com/articles/forex/11/hedging-with-currency-swaps.asp
    ... swap. To hedge against exchange rate volatility, a portfolio manager could
    execute a currency swap in the same way as the company. ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Volatility ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/volatility-risk.asp
    ... Forward Rates vs Spot Rates; 14.46 Measuring Interest Rate Risk; 14.47 Price Volatility; ...
    Cash Flows on Put-Call Parity and the Lower Bounds; 15.36 Swap Markets and ...

  • Iron-Clad Swaps

    http://stocks.investopedia.com/stock-analysis/2010/Iron-Clad-Swaps-VALE-BHP-DB-CS-MS-CME-MT0709.aspx
    ... having an active futures market does not relieve the opacity of the swap market,
    it ... The biggest potential side-effect here is greater volatility in the market. ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Price ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/price%20volatility.asp
    ... Forward Rates vs Spot Rates; 14.46 Measuring Interest Rate Risk; 14.47 Price Volatility; ...
    Cash Flows on Put-Call Parity and the Lower Bounds; 15.36 Swap Markets and ...

  • 5 Equity Derivatives And How They Work

    http://www.investopedia.com/articles/optioninvestor/10/equity-derivatives.asp
    ... hedge for open stock positions; Protect a long equity position against volatility
    or the ... Trade A CFD.) 5. Index Return Swaps An equity index return swap is an ...

  • The Bloomberg Terminal At A Glance

    http://www.investopedia.com/articles/professionaleducation/11/bloomberg-terminal.asp
    ... Derivatives, Using Historical Volatility. Another function popular with large
    banks and institutional investors, is the Swap Manager tool. ...

  • Derivatives 101

    http://www.investopedia.com/articles/optioninvestor/10/derivatives-101.asp
    ... High volatility increases the value of both puts and calls. ... OTC derivatives are
    contracts that are made privately between parties such as swap agreements. ...

  • An Introduction To Swaps

    http://www.investopedia.com/articles/optioninvestor/07/swaps.asp
    ... a swaption would allow a party to set up, but not enter into, a potentially offsetting
    swap at the time they execute the original swap. ... Price Volatility Vs. ...

  • A Guide To Real Estate Derivatives

    http://www.investopedia.com/articles/optioninvestor/08/real-estate-derivative.asp
    ... The ability to swap exposures now allows the real estate investor to become more
    tactical when investing. ... Read More ยป; Price Volatility Vs. Leverage. ...

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