| Vega |
The measure of the change in an option's premium for a 1% change in the volatility of the underlying futures contract. Equal to the change in premium divided by 1% change in volatility. |
| Vertical spread |
The purchase of a call (put) and the sale of a call (put), where the options have the same expiration but different strike prices. |
| Volatility |
Another term used to describe price variability that is tied either to the actual or expected standard deviation of daily returns of a specific FX contract. Volatility is typically stated on an annualized basis. |
| Volatility Quote |
An alternative means of quoting options, or combinations involving options, by bidding or offering the implied volatility. Any transactions quoted in volatility terms will be translated into price terms for clearing purposes by means of a standard options pricing model maintained and disseminated by the exchange. |
| Volume |
The number of contracts in futures or options on futures made during a specified period of time. At CME, it refers to "aggregated quantity" (i.e., total traded volume of the day). The published exchange volume figure consists of all trades executed on the trading floor, CME Globex and by Exchange-For-Physical (EFP). |
| VPN |
Virtual private network, a private data network that makes use of the public telecommunication infrastructure, maintaining privacy through the use of a tunneling protocol and security procedures. |