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What is the difference between vvix and vix in the context of cryptocurrency trading?

avatarPZRoeeDec 18, 2021 · 3 years ago3 answers

Can you explain the difference between vvix and vix in the context of cryptocurrency trading? I've heard these terms mentioned but I'm not sure what they mean or how they relate to cryptocurrency trading.

What is the difference between vvix and vix in the context of cryptocurrency trading?

3 answers

  • avatarDec 18, 2021 · 3 years ago
    Vvix and Vix are both volatility indexes used in the financial markets, including cryptocurrency trading. Vvix specifically measures the volatility of the Vix index, which represents the expected volatility of the S&P 500 index. On the other hand, Vix measures the expected volatility of the stock market in general. While both indexes can provide insights into market sentiment and potential price movements, Vvix focuses on the volatility of the Vix index itself, while Vix provides a broader view of market volatility. In cryptocurrency trading, monitoring both indexes can help traders gauge market sentiment and make informed trading decisions.
  • avatarDec 18, 2021 · 3 years ago
    Vvix and Vix are two different volatility indexes that are commonly used in cryptocurrency trading. Vvix specifically measures the volatility of the Vix index, which is widely regarded as a barometer of market sentiment and expected price fluctuations in the stock market. On the other hand, Vix measures the expected volatility of the stock market as a whole. While both indexes can provide valuable insights into market volatility, Vvix is more focused on the volatility of the Vix index itself. In the context of cryptocurrency trading, monitoring both indexes can help traders assess market sentiment and make informed trading decisions based on expected price movements.
  • avatarDec 18, 2021 · 3 years ago
    Vvix and Vix are two volatility indexes that are commonly used in cryptocurrency trading. Vvix measures the volatility of the Vix index, which represents the expected volatility of the S&P 500 index. On the other hand, Vix measures the expected volatility of the stock market in general. While both indexes can be useful in assessing market sentiment and potential price movements, it's important to note that they are not specific to cryptocurrency trading. However, monitoring these indexes can still provide valuable insights into overall market volatility, which can indirectly impact cryptocurrency prices. As a trader, it's important to stay informed about various market indicators, including Vvix and Vix, to make well-informed trading decisions.