What is the difference between IV percentile and IV rank in the context of cryptocurrency?
Alexis SakarikosJan 14, 2022 · 3 years ago1 answers
Can you explain the distinction between IV percentile and IV rank in the context of cryptocurrency? How are these two metrics calculated and what do they indicate?
1 answers
- Jan 14, 2022 · 3 years agoAs an expert in the cryptocurrency industry, I can tell you that IV percentile and IV rank are important metrics for assessing the volatility of cryptocurrencies. IV percentile measures the percentage of days in a given period that the implied volatility of a cryptocurrency has been lower than the current level. This metric can help traders identify periods of relatively low volatility, which may present opportunities for certain trading strategies. IV rank, on the other hand, compares the current implied volatility to its historical range over a specific period. It provides a measure of how the current volatility level compares to historical levels. By considering both IV percentile and IV rank, traders can gain a better understanding of the volatility dynamics in the cryptocurrency market and make more informed trading decisions.
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