What is the difference between hv and iv in the cryptocurrency market?

1 answers

• May 03, 2022 · 3 years ago
  In the cryptocurrency market, HV and IV refer to Historical Volatility and Implied Volatility, respectively. Historical Volatility measures the past price movements of a cryptocurrency, providing insights into its price fluctuations over a specific period. Implied Volatility, on the other hand, is an estimation of future price movements based on options pricing. It reflects the market's expectation of a cryptocurrency's future volatility. Both HV and IV are important indicators for traders to assess the risk and potential profitability of a cryptocurrency investment. By analyzing HV and IV, traders can make informed decisions on when to enter or exit positions in the cryptocurrency market. It's crucial to understand the difference between HV and IV to effectively manage risk and maximize returns in cryptocurrency trading.
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