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Historical volatility

The range of a price's swings measured on data that has already happened.

How to read the number

It is the reference point for implied volatility: the gap between the two shows whether the market prices future movement above or below the movement already seen.

When the metric lies

The answer depends on the window: a short one jumps after every violent day, a long one smooths away even a crisis. Two sources with different windows quote different numbers for one instrument.

Also known as: realised volatility

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