Risk Reversal
Risk reversal can refer to an options structure combining a call and put with different strikes, and it is also used as a volatility market measure comparing implied volatility between corresponding calls and puts.
Why it matters to you
As a volatility measure, risk reversals can help show how the market is pricing upside versus downside volatility. As a strategy, the structure creates directional exposure. Because the term has both uses, the glossary needs to distinguish them clearly.