# Implied Volatility

There are two types of volatility: statistical volatility and implied volatility.

**Statistical (Historical) Volatility**is a measure of past actual asset price changes over a specific period.

**Implied Volatility**is a measure of how much the marketplace expects the asset price to move based on price changes in an option. It is what the market is "implying" the volatility of the stock price might be in the future.