Volatility Instruments
Volatility instruments are financial instruments that track the value of implied volatility of other derivative securities. For instance, the CBOE Volatility Index (VIX) is calculated from a weighted average of implied volatilities of various options on the S&P 500 Index. There are also other commonly referenced volatility indices such as the VXN index (Nasdaq 100 index futures volatility measure), the QQV (QQQ volatility measure), IVX - Implied Volatility Index (an expected stock volatility over a future period for any of US securities and exchange traded instruments), as well as options and futures derivatives based directly on these volatility indices themselves.
Read more about this topic: Implied Volatility
Famous quotes containing the word instruments:
“Fashionable women regard themselves, and are regarded by men, as pretty toys or as mere instruments of pleasure; and the vacuity of mind, the heartlessness, the frivolity which is the necessary result of this false and debasing estimate of women, can only be fully understood by those who have mingled in the folly and wickedness of fashionable life ...”
—Sarah M. Grimke (17921873)