Volatility measures the degree of variation in the price of a security. Though known for its use by options traders, volatility measurements is one of the three core considerations (alongside price and volume) that even equity traders should use — because as this article will show, it can indicate a stock market correction.
There are two types of volatility traders must have in their toolbelt — Implied & Realized. To begin with, implied volatility relates to derivatives, and realized relates to equities.[Read more…] about Implied vs Realized Volatility: Ultimate Showdown