Crypto Derivatives Protocol Volmex Finance's Bitcoin and Ether Volatility Charts Now Live on TradingView
Charts of Ethereum-based volatility and derivatives protocol Volmex Finance's implied volatility (IV) indices for bitcoin (BTC) and ether (ETH) are now available on a leading technical analysis platform TradingView.
The charts went live on Friday, Cole Kennelly, Founder and CEO of Volmex Labs, said in a press release shared with CoinDesk, calling the TradingView integration a massive milestone.
"This partnership between TradingView and Volmex is a massive milestone, as 50 million traders and investors using TradingView monthly can now access the Volmex Implied Volatility Indices, the BVIV Index and EVIV Index," Kennelly said.
Volmex's Bitcoin implied volatility index (BVIV) and Ether implied volatility index (EVIV) measure the expected price turbulence over 30 days, derived from real-time crypto call and put options. The indices can be considered analogous to Wall Street's fear gauge, the VIX index, which is also derived from the options market tied to S&P 500.
More than 50 million traders and investors from across the globe use TradingView per month to confirm market trends and visualize key entry and exit points for buy and sell trades. These traders can now study Volmex's volatility charts to predict and bet on price turbulence in top cryptocurrencies.
"Volmex also builds a suite of products around the Volmex Implied Volatility Indices, which make the indices tradable and investable for hedging, speculating, and diversification," Kennelly told CoinDesk.
Volatility trading involves betting on the future stability of an asset instead of betting on the direction of future price moves. Going long or buying volatility means betting the asset's price might move violently in either direction.
Traders typically go long on volatility through complex options strategies or volatility futures contracts when the IV appears cheap relative to its lifetime average and/or historical volatility. Conversely, volatility is sold when IV appears too high relative to historical volatility.
Volatility trading is becoming increasingly popular in the crypto market, thanks to bitcoin's evolution as a macro asset since the coronavirus-induced crash of March 2020.