Definition
A measure of actual price fluctuations over a past period.
Understanding Historical Volatility
Historical Volatility is an important concept in stock market trading. Understanding this term will help you make better trading decisions and communicate effectively with other traders and financial professionals.
Key Points
- Basic Definition: A measure of actual price fluctuations over a past period.
- Category: This term is commonly used in Derivatives
- Relevance: Essential knowledge for traders operating in Indian stock markets
Practical Example
When trading on NSE or BSE, you'll encounter historical volatility regularly. For example, understanding this concept helps you analyze market conditions, make informed decisions, and manage your trading positions effectively.
Related Concepts
To fully understand historical volatility, you should also be familiar with related trading concepts. Check out the related terms in the sidebar for a comprehensive understanding of this topic.