volatility drag
Word Rarity
Rare
Frequency: Zipf frequency 3.43 in modern English
22
Scrabble Score
14
Letters
4
Syllables
10
Unique Chars
Meaning
noun
A negative impact on the compound returns from a leveraged investment product caused by an underlying reference value being regularly reset so that to cover any loss in value the appreciation in proportion to it needs to be larger.
Countable; Informal; Uncountable