volatility drag
volatility drag noun: a negative impact on the compound returns from a leveraged investment product caused by an underlying reference value being regularly reset so that to cover any loss in value the appreciation in proportion to it needs to be larger.
Noun
volatility drag (countable and uncountable, plural volatility drags)
- A negative impact on the compound returns from a leveraged investment product caused by an underlying reference value being regularly reset so that to cover any loss in value the appreciation in proportion to it needs to be larger.
- Synonyms:
- variance drain, volatility tax, volatility decay
Synonyms of volatility drag
Forms of volatility drag
| plural | volatility drags |
|---|
Questions about volatility drag
- What does volatility drag mean?
- Volatility drag means a negative impact on the compound returns from a leveraged investment product caused by an underlying reference value being regularly reset so that to cover any loss in value the appreciation in proportion to it needs to be larger.
- What part of speech is volatility drag?
- Volatility drag is a noun.
- What is the plural of volatility drag?
- The plural of volatility drag is volatility drags.
Words near volatility drag in the dictionary
Source and license
Adapted from Wiktionary: volatility drag (page history and authors). Text available under the Creative Commons Attribution-ShareAlike 4.0 license. Word.ws reformatted the entry and added links. Wiktionary data of 2026-09-02.
Last updated:
Cite this entry: “volatility drag.” Word.ws, https://word.ws/volatility_drag. Based on Wiktionary, CC BY-SA 4.0.
