Value
The importance placed on something by an individual. Value is subjective and may change according to the circumstances. Something that may be valued highly at one time may be valued less at another time.
Variable limits
Most exchanges set limits on the maximum daily price movement of some of the futures contracts traded on their floors. They also retain the right to expand these limits if the price moves up- or down-limit for one, two, or three trading days in a row. If the limits automatically change after repeated limit moves, they are known as variable limits.
Variation margin call
A margin call from the clearinghouse to a clearing member. These margin calls are issued when the clearing member’s margin has been reduced substantially by unfavorable price moves. The variation margin call must be met within one hour.
Vertical spreads
Also known as a price spread, is constructed with options having the same expiration months. This can be done with either calls or puts. See Bear call spread, Bull call spread, Bear put spread, and Bull put spread.
Volatile
A market which often is subject to wide price fluctuations is said to be volatile. This volatility is often due to a lack of liquidity.
Volume
The number of futures contracts, calls, or puts traded in a day. Volume figures use the number of longs or shorts in a day, not both. Such figures are reported on the following day.
