Word.ws English Dictionary

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)

  1. (informal) 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 of volatility drag

Forms of volatility drag

pluralvolatility 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

  1. volatility clustering
  2. volatility clusterings
  3. volatility clusters
  4. volatility decay
  5. volatility decays
  6. volatility drag
  7. volatility drags
  8. volatility halt
  9. volatility halts
  10. volatility interruption
  11. volatility interruptions

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.

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