What does variance swap mean?
Definitions for variance swap
vari·ance swap
This dictionary definitions page includes all the possible meanings, example usage and translations of the word variance swap.
Wikipedia
Variance swap
A variance swap is an over-the-counter financial derivative that allows one to speculate on or hedge risks associated with the magnitude of movement, i.e. volatility, of some underlying product, like an exchange rate, interest rate, or stock index. One leg of the swap will pay an amount based upon the realized variance of the price changes of the underlying product. Conventionally, these price changes will be daily log returns, based upon the most commonly used closing price. The other leg of the swap will pay a fixed amount, which is the strike, quoted at the deal's inception. Thus the net payoff to the counterparties will be the difference between these two and will be settled in cash at the expiration of the deal, though some cash payments will likely be made along the way by one or the other counterparty to maintain agreed upon margin.
Numerology
Chaldean Numerology
The numerical value of variance swap in Chaldean Numerology is: 6
Pythagorean Numerology
The numerical value of variance swap in Pythagorean Numerology is: 6
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"variance swap." Definitions.net. STANDS4 LLC, 2024. Web. 23 Apr. 2024. <https://www.definitions.net/definition/variance+swap>.
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