Finicade
Sign in
Derivatives & Options

Variance Swap

A contract that pays the difference between the volatility an asset actually realises and a level agreed up front — a pure, direct bet on volatility with no option-hedging needed. The building block behind the VIX.

Where this is taught

Definitions are the trailer. These free levels turn Variance Swap into something you play — one bite-size lesson, with worked examples, a quiz and XP.

← All Derivatives & Options terms & the full glossary