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Meaning of volatility drag | Babel Free

Noun CEFR B2

Definitions

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.

countable, informal, uncountable

CEFR level

B2
Upper Intermediate
This word is part of the CEFR B2 vocabulary — upper intermediate level.
See all B2 English words →

See also

volatility tax Volatilization Volatilize Volatilized volatilizer Volatilizing

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