Trading TermsCapital Market Broker's Deck Warrant Specialist Presentation Net Asset Value
Vega
Option sensitivity to changes in volatility is known as "vega." As volatility increases, the price of an option will also increase, making it more expensive to purchase. This is because higher volatility means there is a greater chance for significant changes in the underlying asset's price, making the option more valuable. Conversely, as volatility decreases, the price of an option will decrease, making it less expensive to purchase. Understanding vega is crucial in evaluating and managing the risk associated with options trading.
Related terms
Understand the meaning and definition of Capital Market in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Broker's Deck in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Warrant in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Specialist in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Presentation in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Net Asset Value in the context of stock market, trading, and investments.
MOREExplore other categories
4.4 Cr+DOWNLOADS
Enjoy Zero Brokerage On Stock Investments
Get the link to download the App
