Implied Volatility

What is Implied Volatility?

Implied volatility is a prediction of how much the price of a security will move over a given period of time. It's most often used to price options contracts. This is the single most important factor that decides whether you will make money in the trade or not. Therefore, it is important to understand this concept carefully. Implied volatility measures how much a security's price is likely to move up or ...

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