# Local Volatility

*Quant & Pricing — Finicade finance glossary*

A model where volatility isn't one number but varies with price and time, calibrated to match every option's market price at once. It bends Black–Scholes to fit the real volatility smile.

**Also known as:** dupire, dupire-local-volatility

**Related terms:** [Volatility Smile](https://finicade.com/glossary/volatility-smile-skew), [Implied Volatility](https://finicade.com/glossary/implied-volatility), [Stochastic Volatility](https://finicade.com/glossary/stochastic-volatility)

**Taught in:** Quant Quest — The Volatility Smile, Explained

Source: https://finicade.com/glossary/local-volatility