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A measure of the variation in price over time. Also a measure of the risk of a financial instrument.

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What does it mean to be "long or short in volatility"?

The question is: Is the call long or short in volatility when it is (deep) OTM? What is the profile of the implied volatility? I know that in that case the answer is "long". … Therefore you want the volatility to be low. I don't understand what exactly this term means neither where it comes from. I guess it is related to volatility trading/arbitrage. …
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