Volatility surface
vol surfaceIV surface
A 3D plot of implied vol across strike + expiry — the canonical view of how the market prices forward risk.
Surface shape encodes investor positioning. Steep put-side skew = downside hedging demand. Inverted term structure = near-term stress. Stablecoin-perp basis trades read the surface for funding-rate forecasting.
Related terms
- Implied volatilityThe volatility input that, fed into a pricing model, reproduces the option's market price — a forward-looking volatility expectation.
- Realized volatilityThe actual volatility experienced over a backward window — the empirical counterpart to implied volatility.
- OptionA derivative giving the holder the right (not obligation) to buy ([[call-option]]) or sell ([[put-option]]) at a fixed price by expiry.