Risk Management, Energy & Finance Glossary - V, Value at Risk Risk Management, Energy & Finance Glossary - V, VaR Value at Risk Return to Risk Limited home page from this Risk Glossary

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V - the Commodity Futures Symbol which represents the October Delivery Month.

Value at Risk (VaR) - a quantitative methodology for estimating market risk. A more detailed description of VaR can be displayed from the Risk Limited Factoids page here.

Variance - a measure of volatility, risk, or statistical dispersion.  It is the square of the standard deviation.

Variance-Covariance VaR - linear VaR.

Vega - the measure of change in an option value given a change in the volatility.

Venn Diagram - a pictorial depiction of the relations among sets or events, where set are shown as regions with the overlap of the regions corresponds to the intersection of the sets. If the regions do not overlap, the sets are disjoint.

Volatility - a measurement of the rate of price change of a futures contract, security, or other instrument underlying an option.  See also Historical Volatility, Implied Volatility.

Volatility Smile - a condition where implied volatilities for in-the-money and out-of-the-money strikes exceed those for at-the-money strikes.  Graphically depiction of this condition is a curve in the form of a 'smile', hence the name.

Volumetric Risk - risk resulting from uncertainty and changes in exposure level for usage, productions or other factors. Hedge instruments structured to manage such risks include Swing Options.

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