In futures trading, there are two types of volatility: historic and implied. Although both address the behavior of price action, they are very different concepts. Read on to learn more about implied volatility and how it is interpreted in the live market. Understanding Implied Volatility According to Investopedia, implied volatility (IV) is “a metric that… Read more.
In the futures and options markets, volatility is a primary concern of every participant. No matter what you’re trading―whether it’s stocks or soybeans―understanding when, why, and how the market moves is vital to success. Although options are unique financial instruments, volatility must be accounted for. If not, risk increases exponentially while opportunity is often squandered.
By definition, volatility is the variance of price action from a mean value over a specific period of time. Although many traders hesitate to engage the markets during especially active cycles, day trading futures can be a great way to secure profits. In fact, the enhanced liquidity and robust depth-of-market make active periods some of… Read more.