volatility arbitrage

English - Turkish

Definition of volatility arbitrage in English Turkish dictionary

volatilite arbitraj

English - English

Definition of volatility arbitrage in English English dictionary

(Finans) Volatility arbitrage (or vol arb) is a type of statistical arbitrage that is implemented by trading a delta neutral portfolio of an option and its underlier. The objective is to take advantage of differences between the implied volatility of the option, and a forecast of future realized volatility of the option's underlier. In volatility arbitrage, volatility is used as the unit of relative measure rather than price - that is, traders attempt to buy volatility when it is low and sell volatility when it is high

Hyphenation

vol·a·ti·li·ty ar·bi·trage

Turkish pronunciation

välıtîlıti ärbîträj

Pronunciation

/ˌväləˈtələtē ˈärbəˌträᴢʜ/ /ˌvɑːləˈtɪlətiː ˈɑːrbɪˌtrɑːʒ/