What does IV mean in terms of money? IV is the Roman numeral 4, which is used to represent the number or the fourth element in the periodic table of chemical elements-titanium. In finance and investment, IV refers to implied volatility, namely implied volatility. It is the market's expectation of stock or option price fluctuation, that is, the market's expectation of future fluctuation. The higher the implied volatility, the greater the fluctuation of the market to the price, and vice versa.

The application of implied volatility (IV) in option trading is very important. When buying options, knowing the implied volatility can help investors judge whether it is appropriate to buy options. There is a positive correlation between implied volatility and option price, that is, the higher the implied volatility, the higher the option price. Therefore, when buying options, if you expect the stock price to fluctuate greatly, then you may need to pay a higher option fee.

Generally speaking, IV is an important indicator to measure market risk and uncertainty. Whether it is stocks, futures, options or other trading varieties, we need to consider the index of implied volatility. With the rapid development of modern finance, it is very important for investors to understand the implied volatility. Only by deeply understanding the implied volatility can we better grasp the market changes and investment opportunities.