October 16th, BitVol (Bitcoin Volatility) index launched by financial index company T3 Index in collaboration with Bitcoin options trading platform LedgerX rose to 39, with a daily increase of 0.44%. BlockBeats 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 the actual option price.
It is the volatility derived by using the B-S option pricing formula, with the actual option price and other parameters except for the volatility σ plugged into the formula. The actual price of the option is formed by the competition of many option traders. Therefore, implied volatility represents the market participants' views and expectations of the future market, and is viewed as the closest to the actual volatility at that time.
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