What is Convexity?
Convexity — A measure of how a bond’s duration itself changes as yields move — it refines the price-sensitivity estimate that duration gives.
In simple terms
Higher convexity cushions a bond’s price when rates swing.
Why Convexity matters when you invest
Understanding convexity helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Convexity — frequently asked questions
What is Convexity?
A measure of how a bond’s duration itself changes as yields move — it refines the price-sensitivity estimate that duration gives.
What does Convexity mean in the stock market?
A measure of how a bond’s duration itself changes as yields move — it refines the price-sensitivity estimate that duration gives. Higher convexity cushions a bond’s price when rates swing.
Can you give an example of Convexity?
Higher convexity cushions a bond’s price when rates swing.
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