Alphabetical - V

Value at RiskA loss that will not be exceeds at some specified confidence.
VanillaA term used to describe a standard deal
Vanilla SwapFloating for Fixed
Variance RateThe square of volatility
Variance-Covariance MatrixA matrix showing variances of and covariances between a number of different market variables.
Variation MarginAn extra margin required to bring the balance in a margin account up to the initial margin when there is a margin call. Further amounts of deposit (debit or credit) calculated by a Clearing House
VegaRate of change in the price of an option (or other derivative) with volatility.
Vega Neutral PortfoiloA portfolio with a vega of zero.
Venture Capitalcapital provided for high risks which would not normally attract conventional finance
Vix IndexA measure of the implied volatility of the S&P index options.
VolatilityA measure of the uncertainty of the return realised on an asset.
Volatility MatrixA table showing the variation of implied volatilities with strike price and time to maturity.
Volatility SkewA term used to describe the volatility smile when it is nonsymmetrical
Volatility SmileThe variation of implied volatility with strike prices.
Volatility SwapSwap where the realised volatility during an accrual period is exchanged for a fixed volatility. Both percentage volatilities are applied to a notional principal.
Volatility Term StructureThe variation of implied volatility with time to maturity.
VRNVariable rate note. A floating rate note where the margin above LIBOR is not fixed but reset at intervals
Value at Risk
A loss that will not be exceeds at some specified confidence.
Vanilla
A term used to describe a standard deal
Vanilla Swap
Floating for Fixed
Variance Rate
The square of volatility
Variance-Covariance Matrix
A matrix showing variances of and covariances between a number of different market variables.
Variation Margin
An extra margin required to bring the balance in a margin account up to the initial margin when there is a margin call. Further amounts of deposit (debit or credit) calculated by a Clearing House
Vega
Rate of change in the price of an option (or other derivative) with volatility.
Vega Neutral Portfoilo
A portfolio with a vega of zero.
Venture Capital
capital provided for high risks which would not normally attract conventional finance
Vix Index
A measure of the implied volatility of the S&P index options.
Volatility
A measure of the uncertainty of the return realised on an asset.
Volatility Matrix
A table showing the variation of implied volatilities with strike price and time to maturity.
Volatility Skew
A term used to describe the volatility smile when it is nonsymmetrical
Volatility Smile
The variation of implied volatility with strike prices.
Volatility Swap
Swap where the realised volatility during an accrual period is exchanged for a fixed volatility. Both percentage volatilities are applied to a notional principal.
Volatility Term Structure
The variation of implied volatility with time to maturity.
VRN
Variable rate note. A floating rate note where the margin above LIBOR is not fixed but reset at intervals

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