Variance Swap

Variance Swap

This is a kind of volatility swap in which the return is dependant on variance instead of volatility. The payout in a variance swap is bigger than that in a volatility swap, as the returns depend on variance and not standard deviation, which is the usual measure of volatility.

Random Finance Terms for the Letter V

• Variable Rate CDs
• Variable Rated Demand Bond
• Variable Rate Demand Note
• Variable Rate Loan
• Variable Ratio Write
• Variance
• Variance Minimization Approach to Tracking
• Variance Rule
• Variance Swap
• Variation Margin

Related posts:

1. Variance Rule
2. Variance Minimization Approach to Tracking
3. Variance
4. Variable Rate Demand Note (VRDN)
5. Variable Rated Demand Bond (VRDB)