Index of Bitcoin Volatility BitVol Achieves 46.4

BlockBeats reports that the BitVol index, which was introduced by financial index provider T3 Index in association with the options trading platform LedgerX, increased by 1.05% in a single day on July 1 to 46.4.

The tradable Bitcoin option prices are used to calculate the expected implied volatility, which is measured by the BitVol index. The volatility implied by the actual option price is referred to as implied volatility. It is the volatility that is inferred by using the B-S option pricing formula with the real option price and other parameters—but not volatility σ.

The competition between numerous option traders determines an option's actual price. Implied volatility, which thus reflects the opinions and expectations of market participants for the market's future