CVI Index
The CVI index is a volatility index for crypto.
Last updated
The CVI index is a volatility index for crypto.
Last updated
The Crypto Volatility Index (CVI) stands as a pioneering benchmark in the cryptocurrency market, offering a decentralized, stable, and transparent measure of market volatility. Developed in collaboration with Prof. Dan Galai, co-creator of the original CBOE volatility index, CVI serves as a "market fear index" specifically tailored for the dynamic world of cryptocurrencies.
Functionality and Mechanics
At its core, CVI tracks the 30-day implied volatility of major cryptocurrencies, namely Bitcoin and Ethereum. The base CVI index operates on a scale from 0 to 200, reflecting varying levels of market volatility. Its calculation is rooted in the Black-Scholes option pricing model, which integrates the implied volatility derived from cryptocurrency option prices and incorporates the market's projections of future volatility.
Trading and Strategic Application
Trading based on the CVI provides a unique strategic advantage. It allows traders to capitalize on market volatility without the need to predict specific price directions. Traders make a profit on volatile markets, whether the prices are going up or down.
Tradingview Integration
TradingView is a widely recognized and highly regarded platform among traders and investors, with a vast user base spanning the globe. It offers state-of-the-art charting tools that allow market enthusiasts to engage, analyze data, and prepare for , trading and various other assets.
