What it means

Implied volatility reflects how much movement the options market is pricing in, rather than what the market has already done.

What to watch

It is not the same thing as realized volatility, but comparing the two can help traders think about whether expected movement is rich or muted.

Where traders usually run into this

Implied Volatility is most useful once it is tied to a concrete page, chart decision, or workflow question.

  • Realized Volatility keeps this term attached to a real glossary instead of leaving it as standalone jargon.
  • Volatility keeps this term attached to a real glossary instead of leaving it as standalone jargon.
  • Expectancy keeps this term attached to a real glossary instead of leaving it as standalone jargon.

Best next page if this term is blocking you

If you understand the definition but still do not know what to do with it, start with Realized Volatility. That page is the fastest way to see how implied volatility shows up in a real glossary workflow.

Realized Volatility Glossary