On October 29th, the BitVol (Bitcoin volatility) index, launched by financial index company T3 Index in partnership with Bitcoin options trading platform LedgerX, dropped to 53.19, a daily decrease of 2.44%. Note: The BitVol index measures the 30-day expected implied volatility derived from tradable Bitcoin options prices. Implied volatility refers to the volatility implied by actual option prices. It is the volatility derived by using the B-S option pricing formula and inputting the actual option price and other parameters except for the volatility σ into the formula. The actual price of an option is formed by competition among many option traders, so implied volatility represents the market participants' views and expectations of the future market, thus being viewed as the closest to the actual volatility at that time.
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