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Financial Glossary

Volatility

An explanation of how quickly the price of a market or instrument rises or falls. A highly volatile market can be risky for short-term investors as they risk buying at a peak or selling in a trough at a loss.

Vega

Measures an option price's value relative to changes in implied volatility of an underlying asset.

Vomma

It is the rate at which the vega of an option will react to volatility in the market.

Vintage

Vintage is a slang term used by mortgage-backed securities (MBS) traders and investors to refer to an MBS that is seasoned over some time period.