# Realized Volatility

*Risk & Portfolio — Finicade finance glossary*

Realized volatility is the volatility an asset actually delivered over a period, computed from observed returns. Comparing it with implied volatility is the core option trade: implied has historically exceeded realized on average, which is the volatility risk premium option sellers harvest. Measured from high-frequency data it becomes a far more accurate estimate than daily closes allow, which is why intraday realized-vol estimators dominate modern risk systems.

**Formula:** `Annualised realized vol = Std dev of daily returns × √252`

**Also known as:** realised volatility, actual volatility

**Related terms:** [Implied Volatility](https://finicade.com/glossary/implied-volatility), [Historical Volatility](https://finicade.com/glossary/historical-vol), [Variance Swap](https://finicade.com/glossary/variance-swap), [Volatility](https://finicade.com/glossary/volatility), [Volatility Clustering](https://finicade.com/glossary/volatility-clustering)

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