Dictionary: Y

Yang-Zhang volatility

A composite estimator combining overnight, open-to-close, and range variance. It handles both gaps and drift, at the cost of complexity.

Year-over-year growth

A period compared with the same period twelve months earlier, which removes seasonality and is the default growth measure in company reporting.

Yen carry unwind (2024)

The rapid reversal of short-yen carry positions in July and August 2024, when a Bank of Japan rate rise met falling US yields and forced leveraged positions to be closed at once.

Yen cross

Any pair with the yen as the quote currency but not the dollar as the base, such as AUD/JPY, EUR/JPY or GBP/JPY.

Yerkes-Dodson law

Performance improves with arousal up to a point and then declines, and the peak sits lower for complex tasks than for simple ones.

Yield curve

A plot of Treasury yields across maturities from 1 month to 30 years; its shape reflects expectations for growth, inflation, and Fed policy.

Yield curve control (YCC)

A policy of pegging a specific bond yield by standing ready to buy unlimited quantities at that level, rather than targeting the quantity of purchases.

Yield farming

Moving capital between DeFi protocols to capture the best available returns, usually a mix of trading fees, lending interest and token incentives.

Yield to call (YTC)

The return on a callable bond assuming the issuer redeems it at the earliest call date rather than letting it run to maturity.

Yield to maturity (YTM)

The single discount rate that makes a bond's future coupons and principal equal to its current price; the standard measure of a bond's return.

Yield to worst (YTW)

The lowest yield a bond can produce across every possible redemption date, and the conservative number credit investors actually quote.

Yield-bearing stablecoin

A dollar-pegged token that pays a return, whether from Treasury bills, lending, or a derivatives strategy. The yield's source determines the risk.

YM (E-mini Dow futures)

The CME E-mini future on the Dow Jones Industrial Average, $5 per index point, quoted in whole points with a $5 tick.

YOLO

You only live once - putting an outsized share of an account into one speculative position, usually short-dated options or high leverage.

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