Forward volatility is a measure of the implied volatility of a financial instrument over a period in the future, extracted from the term structure of volatility (which refers to how implied volatility differs for related financial instruments with different maturities). == Underlying principle == The variance is the square of differences of measurements from the mean divided by the number of samples.
Forward volatility is a measure of the implied volatility of a financial instrument over a period in the future, extracted from the term structure of volatility (which refers to how implied volatility differs for related financial instruments with different maturities). == Underlying principle == The variance is the square of differences of measurements from the mean divided by the number of samples.
Source: Wikipedia "Forward volatility" · CC BY-SA 4.0
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