What is volatility trading?

In trading, volatility is a measure of how prices or returns are scattered over time for a particular asset or financial product. Price action is a measure of volatility. Traders are therefore trading volatility all the time and creating it with their transactions.

The most fundamental principle of investing is buying low and selling high, and trading options is no different. So option traders will typically sell ("Historical vs Implied Volatility · Volatility, Vega, and More · Buy (or Go Long) Puts

Volatility is a measure of price-change during a specified amount of time. When markets are volatile, this means that prices are changing fast in a

: Most of the times the underlying asset trades in a spot market (especially when the underlying is a financial asset), where there needs to be a full

Volatility is a statistical measure of the dispersion of returns for a given security or market index. In most cases, the higher the volatility, the riskier the security."Historical Volatility · Dispersion · Market Indicators

What is volatility trading? When you trade volatility, you take a view on the future stability of a financial asset's value. Instead of trading on the price either rising or