V — Trading Terms Starting With V
Explore trading terms beginning with V, with clear definitions covering market structure, execution, risk, instruments, analysis, psychology, and performance concepts used by traders.
Trading terms beginning with V
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Value at Risk
Value at Risk, or VaR, estimates the potential loss of a portfolio over a specific period at a chosen confidence level. It is a statistical risk estimate, not a guaranteed maximum loss.
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Vega is an options Greek that measures how much an option’s price may change when implied volatility changes by one percentage point, assuming other factors remain constant.
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Volume is the number of shares, contracts, or units traded during a selected period. It helps traders study participation, liquidity, conviction, and the strength of price movement.
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Volume-Weighted Average Price, or VWAP, is the average price of an asset weighted by trading volume during a session. It is widely used as an execution and intraday reference.
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Volatility measures the degree and speed of price movement over time. Higher volatility generally means larger price changes, wider ranges, and greater execution and risk uncertainty.
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A volatility index measures expected market volatility derived from option prices. The VIX is a widely known example linked to S&P 500 option expectations.
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A volatility breakout occurs when price moves strongly after a period of compression or reduced movement. Traders often look for range expansion, volume, and confirmation.
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A vertical spread is an options strategy using two options of the same type and expiry but different strike prices. It limits both potential profit and potential loss.
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A value stock is a share that appears inexpensive relative to earnings, assets, cash flow, or comparable companies. It may trade at a discount because of weak sentiment or genuine business risk.
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