Derivatives exchange BitMEX will release an index on Fifth January that it hopes will become the bitcoin world’s version of the VIX– the so-called ‘fear index’ that is made use of to determine unpredictability in the broader monetary markets.
The 30-Day Bitcoin Historic Volatility Index, as BitMEX is calling it, works by taking the time-weighted typical price from Bitfinex’s USD/BTC rate. It then computes bitcoin’s annualised volatility over a rolling 30-day period making use of that data. The result is a measure of bitcoin’s realised volatility for that duration.
True to form as a derivatives exchange, BitMEX has actually created a tradable instrument based upon its new index, and will provide a futures contract quoted in volatility portion points, with each point paying 0.01 BTC. Traders will get approximately five times take advantage of for the contract.Continue reading at