Skip to main content
Stocks

Implied Volatility

Implied volatility is a fundamental concept in finance that measures the level of uncertainty in a stock's price. Unlike historical volatility, which looks at past performance, implied volatility focuses on the current price of an option. When the price of an option increases without a corresponding increase in the underlying stock, it is an indication of a rise in implied volatility. This metric is crucial for investors as it helps them gauge the potential risk and return of a stock.

Related terms

Cash & Cash Equivalents

Understand the meaning and definition of Cash & Cash Equivalents in the context of stock market, trading, and investments.

MORE
Capital Gain or Loss

Understand the meaning and definition of Capital Gain or Loss in the context of stock market, trading, and investments.

MORE
Payment for Order Flow

Understand the meaning and definition of Payment for Order Flow in the context of stock market, trading, and investments.

MORE
Non-Certificated Issues

Understand the meaning and definition of Non-Certificated Issues in the context of stock market, trading, and investments.

MORE
Tick

Understand the meaning and definition of Tick in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.8 Cr+ happy customers
+91