The process of determining the current worth of an asset or company.
Methods include: Discounted Cash Flow (DCF), Comparable Company Analysis, and Book Value.
A risk measure estimating the potential loss of a portfolio over a given time period with a certain confidence level.
Example: A portfolio has a 1-day 95% VaR of $1 million - there's a 5% chance of losing more than $1 million in a day.
The date at which counterparts to a financial transaction decide to settle their existing respective obligations.
An options Greek measuring sensitivity of the option's price to changes in volatility.
Higher Vega: More sensitive to implied volatility changes.
Known as the "Fear Index," it measures expected volatility in the S&P 500 over the next 30 days.
High VIX = Market uncertainty or fear
Low VIX = Calm or complacency
The degree of variation in the price of a financial instrument over time.
High volatility = Larger price swings
Used in: Risk modeling, option pricing, trading strategies
The total number of shares, contracts, or lots traded in a given period.
High volume = More liquidity, stronger signal
Low volume = Illiquidity or uncertainty
An average price a security traded at during the day, weighted by volume.
Used by: Institutional traders to assess execution quality
Formula: (Total Price × Volume) ÷ Total Volume