Crypto Derivatives Protocol Volmex Announces 14-Day Implied Volatility Index Linked to SOL

Crypto derivatives protocol Volmex Finance on Tuesday announced a new implied volatility index for the SOL token. The index is a measure of the expected price volatility of SOL. The SVIV Index measures the expected volatility of SOL over the next 14 days, Volmex said, adding that traders can track the index to get a sense of the extent of the potential volatility of SOL's price over the next two weeks (in either direction.) Volmex said it will eventually launch longer-term SOL Implied Volatility Indexes, including a broadly-tracked 30-day index and derivatives associated with it, to allow market participants to bet on volatility. The term “volatility trading” refers to profiting from the degree of price fluctuation rather than the direction of the price. Traders use instruments such as options linked to underlying assets and futures linked to volatility indices to bet on or hedge volatility.