# Convexity

*Markets & Instruments — Finicade finance glossary*

The curvature that duration alone misses: as rates move a lot, a bond's price responds in a curved, not straight-line, way. Positive convexity is a good thing — prices rise a little faster than they fall.

**Related terms:** [Duration](https://finicade.com/glossary/duration), [Bond](https://finicade.com/glossary/bond), [Interest Rate](https://finicade.com/glossary/interest-rate)

**Taught in:** Capital Quarters — Yields & Interest-Rate Risk

Source: https://finicade.com/glossary/convexity