Trading terms glossary
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V

Variable costs
Variable cost refers to an expense which is subject to change when a products sales volumes change. Costs will typically increase or decrease when sales drop or rise, respectively.

VIX
Short for the Chicago Board Options Exchange Volatility Index, the VIX is used to track S&P 500 index volatility. It is arguably the most well-known volatility index on the market.

Volatility
A market’s volatility is its likelihood of making major, short-term price movements at any time. A high level of volatility can provide opportunity to make profitable trades in a short period of time.

Learn more about Volatility

Volume
Volume in trading refers to the amount of a particular asset being traded over a certain period of time. It’s typically presented alongside price information and offers an extra dimension when examining the price history of an asset.

Learn more about using Volume in trading.

Volume-weighted average price
VWAP  is a technical analysis tool which shows the ratio of an asset’s price to its total trade volume. the VWAP provides traders with a measure of the average price a stock has traded at over a given period of time.