Plain-English definitions for the terms you'll encounter on your financial journey.
A measure of a stock's volatility or systematic risk in relation to the overall market.
A regulatory measure that temporarily halts trading on an exchange to curb panic selling or extreme volatility.
The strategy of investing a fixed amount of money at regular intervals, regardless of the asset's price, to reduce the impact of volatility.
A metric that reflects the market's expectation of how much a stock's price will fluctuate in the future, based on option prices.
A measurement of portfolio returns above a benchmark compared to the volatility of those excess returns.
The difference between the expected price of a trade and the actual price at which the trade is executed, common during periods of high volatility.
An investment style that uses rules-based systems to select stocks based on factors like value or low volatility rather than market cap.
A variation of the Sharpe ratio that only factors in downside or harmful volatility to assess an investment's performance.
A statistical measurement of the historical volatility of an investment.
An options Greek that measures how sensitive an option's price is to changes in the volatility of the underlying asset.
A statistical measure of the dispersion of returns for a given security or market index.
The difference in implied volatility between options that are out-of-the-money, at-the-money, and in-the-money.