Volmex

Volmex Implied Volatility Indices (BVIV and EVIV Indices) Overview

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Volmex Implied Volatility Indices, notably the BVIV Index (Bitcoin Volmex Implied Volatility) and EVIV Index (Ethereum Volmex Implied Volatility), are a series of indices created by Volmex Finance that track the forward-looking 30-day volatility implied by the option quotes available on leading options exchanges. The BVIV and EVIV Indices are both a single number that summarizes the market expectations on BTC and ETH’s future moves. Volmex volatility indices are supported by industry leaders including TradingView, CoinMarketCap, and more.  

How to use Volmex implied volatility indices and volatility products?

  • Speculation: Volatility is persistent and mean-reverting. Therefore, tradable products on BVIV and EVIV Indices can take advantage of long-term and short-term fluctuations.
  • Portfolio management: Volatility is negatively correlated with underlying spot crypto prices in times of fear. Adding volatility to a crypto portfolio reduces portfolio volatility and thus increases Sharpe ratios.
  • Risk management: Trade limits can be dynamically adjusted by variables like VaR and CVar, which are calculated based on volatility.
  • Hedging: Option market makers can reduce their vega inventory using BVIV and EVIV.
  • Indicator: Trading decisions can be enhanced by tracking implied volatility, and trade signals can be created based on BVIV and EVIV.

Both retail and institutional investors and traders in crypto can utilize Volmex volatility indices and tradable volatility products.


How to trade Volmex volatility indices?

  • Exchange-Traded Products: Perpetual futures available on Bitfinex today with leverage up to 20x and contracts are denominated in $1 times the BVIV and EVIV index level. Soon Volmex perpetual futures DEX markets and more.
  • OTC Products: Bilateral dated futures and options are offered by various leading trading firms.

Learn more about Volmex:

  • Website: https://volmex.finance
  • Charts: https://charts.volmex.finance
  • Volmex Methodology Paper: https://volmex.finance/Volmex-IV-paper.pdf
  • BVIV on TradingView: https://www.tradingview.com/symbols/BVIV
  • EVIV on TradingView: https://www.tradingview.com/symbols/EVIV
  • BVIV-PERP on Bitfinex: https://trading.bitfinex.com/t/BVIVF0:USTF0
  • EVIV-PERP on Bitfinex: https://trading.bitfinex.com/t/EVIVF0:USTF0