V

Value date

The date on which the settlement of funds for a trade transaction will take place in your account.

Vanilla option

A normal call or put option that has standardised terms and no special or unusual features. It is generally traded on an exchange.

Variable currency

In Forex, this is the currency that the investor pays with or receives when trading.

For example, in EURUSD the variable currency is US Dollars, that is, one unit of Euros is worth a variable amount of US Dollars.
When buying Euros, you pay with US Dollars, and when selling Euros you receive US Dollars.

The other currency (Euros in the example above) is called the base currency.

Vega

 The measurement of an option's sensitivity to changes in the volatility of the underlying asset. Vega represents the amount that an option contract's price changes in reaction to a 1% change in the volatility of the underlying asset.

View

A View is a term invented by Saxo Bank for a single tab in your screen’s workspace, which includes both trade and information modules.

You can add, change or delete Views to suit your own requirements.

For example, you may want a View set up for trading specific instruments such as DollarYen, and that includes the Chart, Trade and analysis modules specifically for DollarYen.

You will also typically want a View dedicated your account summary.
 A number of default Views are set up in platform to get you started.

Volatility

There are two types of volatility:

  • Historical volatility is actual volatility based on volatility realised in past movements in the market.
  • Implied volatility is the volatility interpreted from the price of Options. So, the implied volatility is the expected spread of movement of an underlying asset’s price, predicted over the term of the Option, and derived from the known prices of Options and the other parameters used in the calculation of those prices.