| 释义 |
Variance Swap
Variance SwapA forward contract on the variance of a security. The variance is the square of the standard deviation. As a result, the payout on a variance swap is higher when the volatility increases. A variance swap allows the investor to speculate on volatility, just as a trader might speculate on the price of a stock; it is most advantageous when the volatility is or is expected to be high. |