Trading TermsCountermove Investment Clubs Outside Reversal Month Primary Market Observer Goods Till Triggered (GTT) Order
Vega
Option sensitivity to changes in volatility is known as "vega." As volatility increases, the price of an option will also increase, making it more expensive to purchase. This is because higher volatility means there is a greater chance for significant changes in the underlying asset's price, making the option more valuable. Conversely, as volatility decreases, the price of an option will decrease, making it less expensive to purchase. Understanding vega is crucial in evaluating and managing the risk associated with options trading.
Related terms
Understand the meaning and definition of Countermove in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Investment Clubs in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Outside Reversal Month in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Primary Market in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Observer in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Goods Till Triggered (GTT) Order in the context of stock market, trading, and investments.
MOREExplore other categories
4.4 Cr+DOWNLOADS
Enjoy Zero Brokerage On Stock Investments
Get the link to download the App
