# Volatility Term Structure

*Derivatives & Options — Finicade finance glossary*

The volatility term structure is implied volatility plotted across expiries for a given strike. In calm markets it slopes upward, because uncertainty grows with horizon; in a panic it inverts, with near-dated vol spiking above long-dated as traders scramble for immediate protection. That inversion is one of the most reliable real-time stress indicators available, and it's what calendar spreads are ultimately trading.

**Also known as:** vol term structure, term structure of volatility

**Related terms:** [Implied Volatility](https://finicade.com/glossary/implied-volatility), [Volatility Surface](https://finicade.com/glossary/volatility-surface), [Calendar Spread](https://finicade.com/glossary/calendar-spread), [VIX](https://finicade.com/glossary/vix), [Volatility Smile](https://finicade.com/glossary/volatility-smile-skew)

Source: https://finicade.com/glossary/volatility-term-structure