What Does Variance Swap Mean?
Swaps are an exploratory financial instrument used to hedge or speculate the underlying value of an asset. These assets include exchange rates, interest rates or index prices. Variation is clearly the difference between the expected result and the actual result.
- An exchange occurs when two parties avoid fundamental fluctuations in assets. This rate is similar to the interest rate exchange rate, in which the two parties exchange payments based on changes in the value of the underlying asset.
- Dimensional traders use variable trading to speculate on the future volatility level of an asset, spread traders use it to bet on the difference between perceived realization and implicit volatility and hedge traders positions. Use ls conversion to save the instability of.
- If the perceived volatility exceeds the strike price, the term profit is positive.
Literal Meanings of Variance Swap
Meanings of Variance:
Different, distorted or contradictory facts or characteristics.
Sentences of Variance
Your light tone does not match your sudden vibration
Synonyms of Variance
divergence, variation, dissimilarity, disagreement, contradiction, imbalance, deviation, distinction, difference, contrast, conflict, discrepancy, incongruity
Meanings of Swap:
Take part in the exchange.
The process of exchanging one thing for another.
Sentences of Swap
We exchange our phone numbers
Synonyms of Swap
pass back and forth, switch, reciprocate, interchange, bandy, trade-off, give and take, substitution, barter, trade, exchange