volatility drags
volatility drags is the plural of volatility drag.
Meaning of volatility drag
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
Questions about volatility drags
- What is volatility drags the plural of?
- Volatility drags is the plural of volatility drag.
Words near volatility drags in the dictionary
Source and license
Adapted from Wiktionary: volatility drags (page history and authors); 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 drags.” Word.ws, https://word.ws/volatility_drags. Based on Wiktionary, CC BY-SA 4.0.
