"volatility drag" meaning in English

See volatility drag in All languages combined, or Wiktionary

Noun

Forms: volatility drags [plural]
Head templates: {{en-noun|~}} volatility drag (countable and uncountable, plural volatility drags)
  1. (informal, finance) 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. Tags: countable, informal, uncountable Synonyms: variance drain, volatility tax, volatility decay
    Sense id: en-volatility_drag-en-noun-YExs0Pe2 Categories (other): English entries with incorrect language header, Pages with 1 entry, Pages with entries, Finance Topics: business, finance

Inflected forms

{
  "descendants": [
    {
      "lang": "French",
      "lang_code": "fr",
      "raw_tags": [
        "borrowed"
      ],
      "word": "volatility drag"
    },
    {
      "lang": "German",
      "lang_code": "de",
      "raw_tags": [
        "borrowed"
      ],
      "word": "Volatilitydrag"
    },
    {
      "lang": "German",
      "lang_code": "de",
      "raw_tags": [
        "borrowed"
      ],
      "word": "Volatility Drag"
    },
    {
      "lang": "German",
      "lang_code": "de",
      "raw_tags": [
        "borrowed"
      ],
      "word": "Volatilitätsdrag"
    }
  ],
  "forms": [
    {
      "form": "volatility drags",
      "tags": [
        "plural"
      ]
    }
  ],
  "head_templates": [
    {
      "args": {
        "1": "~"
      },
      "expansion": "volatility drag (countable and uncountable, plural volatility drags)",
      "name": "en-noun"
    }
  ],
  "lang": "English",
  "lang_code": "en",
  "pos": "noun",
  "senses": [
    {
      "categories": [
        {
          "kind": "other",
          "name": "English entries with incorrect language header",
          "parents": [],
          "source": "w"
        },
        {
          "kind": "other",
          "name": "Pages with 1 entry",
          "parents": [],
          "source": "w"
        },
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        {
          "kind": "other",
          "langcode": "en",
          "name": "Finance",
          "orig": "en:Finance",
          "parents": [],
          "source": "w"
        }
      ],
      "glosses": [
        "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."
      ],
      "id": "en-volatility_drag-en-noun-YExs0Pe2",
      "links": [
        [
          "finance",
          "finance#Noun"
        ],
        [
          "negative",
          "negative"
        ],
        [
          "impact",
          "impact"
        ],
        [
          "compound return",
          "compound interest"
        ],
        [
          "leveraged",
          "leveraged"
        ],
        [
          "investment",
          "investment"
        ],
        [
          "product",
          "product"
        ],
        [
          "cause",
          "cause"
        ],
        [
          "underlying",
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        ],
        [
          "regularly",
          "regularly"
        ],
        [
          "reset",
          "reset"
        ],
        [
          "appreciation",
          "appreciation"
        ]
      ],
      "raw_glosses": [
        "(informal, finance) 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."
      ],
      "synonyms": [
        {
          "word": "variance drain"
        },
        {
          "word": "volatility tax"
        },
        {
          "word": "volatility decay"
        }
      ],
      "tags": [
        "countable",
        "informal",
        "uncountable"
      ],
      "topics": [
        "business",
        "finance"
      ]
    }
  ],
  "word": "volatility drag"
}
{
  "descendants": [
    {
      "lang": "French",
      "lang_code": "fr",
      "raw_tags": [
        "borrowed"
      ],
      "word": "volatility drag"
    },
    {
      "lang": "German",
      "lang_code": "de",
      "raw_tags": [
        "borrowed"
      ],
      "word": "Volatilitydrag"
    },
    {
      "lang": "German",
      "lang_code": "de",
      "raw_tags": [
        "borrowed"
      ],
      "word": "Volatility Drag"
    },
    {
      "lang": "German",
      "lang_code": "de",
      "raw_tags": [
        "borrowed"
      ],
      "word": "Volatilitätsdrag"
    }
  ],
  "forms": [
    {
      "form": "volatility drags",
      "tags": [
        "plural"
      ]
    }
  ],
  "head_templates": [
    {
      "args": {
        "1": "~"
      },
      "expansion": "volatility drag (countable and uncountable, plural volatility drags)",
      "name": "en-noun"
    }
  ],
  "lang": "English",
  "lang_code": "en",
  "pos": "noun",
  "senses": [
    {
      "categories": [
        "English countable nouns",
        "English entries with incorrect language header",
        "English informal terms",
        "English lemmas",
        "English multiword terms",
        "English nouns",
        "English uncountable nouns",
        "Pages with 1 entry",
        "Pages with entries",
        "en:Finance"
      ],
      "glosses": [
        "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."
      ],
      "links": [
        [
          "finance",
          "finance#Noun"
        ],
        [
          "negative",
          "negative"
        ],
        [
          "impact",
          "impact"
        ],
        [
          "compound return",
          "compound interest"
        ],
        [
          "leveraged",
          "leveraged"
        ],
        [
          "investment",
          "investment"
        ],
        [
          "product",
          "product"
        ],
        [
          "cause",
          "cause"
        ],
        [
          "underlying",
          "underlying"
        ],
        [
          "regularly",
          "regularly"
        ],
        [
          "reset",
          "reset"
        ],
        [
          "appreciation",
          "appreciation"
        ]
      ],
      "raw_glosses": [
        "(informal, finance) 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."
      ],
      "synonyms": [
        {
          "word": "variance drain"
        },
        {
          "word": "volatility tax"
        },
        {
          "word": "volatility decay"
        }
      ],
      "tags": [
        "countable",
        "informal",
        "uncountable"
      ],
      "topics": [
        "business",
        "finance"
      ]
    }
  ],
  "word": "volatility drag"
}

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This page is a part of the kaikki.org machine-readable English dictionary. This dictionary is based on structured data extracted on 2026-01-06 from the enwiktionary dump dated 2026-01-01 using wiktextract (96027d6 and 9905b1f). The data shown on this site has been post-processed and various details (e.g., extra categories) removed, some information disambiguated, and additional data merged from other sources. See the raw data download page for the unprocessed wiktextract data.

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