====== Volatility Tab ======

{{:desktop:mm-volatility_tab_1_.png|}}

====== Base Skew's Futures Price ======
The futures price with which the base vols associate.  

**Also Known As:**  
  * **Vols** = Volatility.  

====== Disable Auto Update Base Skew's Futures Price ======
Disable the base futures price from being automatically updated when using any of the fit or adapt methods.  

====== Float Rate ======
The volatility skew float rate. This describes the rate at which the skew moves relative to the futures movement.  

**Details:**  
  * **0** = Fixed  
  * **1** = 100% float  
  * **Max = 2** (200% float)  
  * Float rate can be set **negative**.  

====== Volatility Creation Method ======
Click in the value area to choose the method for creating volatilities.  

**Descriptions:**  
  * **Volatility per strike**: Input a volatility on a per strike basis.  
  * **Multiple slopes**: Create multiple skews between multiple strikes.  
  * **Standard deviation**: Uses a DTE standard deviation skewing method. Input volatility at standard deviation points.  

**Comments:**  
  * **Volatility per strike**: Select a **fit method** to build or rebuild the skew.  
  * **Multiple slopes**: Select an **adapt method** to rebuild the skew.  
  * **Standard deviation**: It is **pro-rated based on the DTE**. The adapt method can be used to build and manage the skew.  
  * Both the **fit** and **adapt** methods are found on the right-hand side of the window under the **fit category** and can be used to build and manage the skew.  

====== Draw Skew Method ======
The method for drawing the skew. The skew can go through all volatility points or be smoothed.  

**Details:**  
  * **Thru Base Vols**: The skew will be drawn through every known base volatility point.  
  * **Smooth Base Vols**: The skew will be smoothed using all known base volatility points. The skew may not go through all strike base volatility due to smoothing of the volatilities.  

**Comments:**  
  * **Base vols**: The volatility of a strike associated with the base skew futures price.  
  * Base vols are found in the strike volatilities.  

====== Smooth Volatility Method ======
Smoothing all strike volatility points.  

**Note:** The skew may not go through all strike volatilities.  

====== Max Curves ======
Set the maximum number of curves allowed. This determines the amount of smoothing to be applied.  

**Example:**  
  * **2** = Max of 2 curves (applies a 3rd-order polynomial).  
  * **3** = Max of 3 curves (applies a 4th-order polynomial).  

====== Strikes Volatilities ======
Manage strike volatilities. Add, edit, and remove strike volatility points. Volatility is expressed in decimal form.  
A volatility of **30.25%** would be entered as **0.3025**.  

**Also Known As:**  
  * **Strike** = Exercise Price  
  * **Strike** = K  
  * **Vols** = Volatility  
  * **Base Vols** = These are the strike volatility points from which the base skew is created.  
    - It uses the **base skew futures price** as a reference for the volatility of the strike at the base skew’s futures price.  

====== Min Ticks ======
Set the number of ticks to ignore when using a **fit method**.  

====== Change with Vol Change ======
Change the **minimum** and **maximum** volatility when all volatilities are changed.  

====== Max Volatility ======
Set the **maximum** volatility for this month.  

====== Min Volatility ======
Set the **minimum** volatility for this month.