Traders Glossary

Volatility Skew

Definition

Whereby deep OTM options tend to have higher Implied Volatilities than ATM options. Where there are discrepancies, this, again gives the trader the opportunity to make trades whose profits are determined by volatility action as opposed to directional price action.

Related Terms
Scroll to Top

WHAT'S YOUR TRADER PERSONALITY?

Take our 30 second quiz to discover your trader personality and find out what trading style suits you best!

WiseTraders
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.