volatility drags

A form of volatility drag — 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.

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Meanings

noun
  1. pluralplural of volatility drag
Cite this entry
APA

volatility drags. (n.d.). In WatkinsX Dictionary. Retrieved November 4, 2026, from https://dictionary.watkinsx.com/word/volatility%20drags

MLA

“volatility drags.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/volatility%20drags. Accessed November 4, 2026.

Chicago

WatkinsX Dictionary, s.v. “volatility drags,” accessed November 4, 2026, https://dictionary.watkinsx.com/word/volatility%20drags.

Source: volatility drags on Wiktionary, CC BY-SA 4.0.