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Fair Value Hedge
April 7, 2020
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April 8, 2020

The band or range in which volatility changes upwardly and downwardly, but not exceeding its upper and lower boundaries. In simple terms, volatility regime refers to volatility state in a given market over a specific period of time. For example, a certain regime may represent a persistent state which constitutes a bull market.

Very high volatility regimes are considered “fear regimes“, as investors and traders harbor bad sentiment about the market.

 

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