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What is the vold ratio in the context of cryptocurrency trading?

avatarAbdul KhadharDec 16, 2021 · 3 years ago3 answers

Can you explain what the vold ratio means in the context of cryptocurrency trading? How is it calculated and what does it indicate?

What is the vold ratio in the context of cryptocurrency trading?

3 answers

  • avatarDec 16, 2021 · 3 years ago
    The vold ratio, also known as the volatility volume ratio, is a metric used in cryptocurrency trading to measure the relationship between trading volume and price volatility. It is calculated by dividing the trading volume of a specific cryptocurrency by its price volatility over a given period of time. The vold ratio provides insights into the liquidity and market sentiment of a cryptocurrency. A higher vold ratio indicates that there is a higher trading volume relative to price volatility, suggesting increased market activity and potentially more reliable price movements. Conversely, a lower vold ratio may indicate lower trading volume relative to price volatility, which could imply less market activity and potentially less reliable price movements.
  • avatarDec 16, 2021 · 3 years ago
    The vold ratio in cryptocurrency trading is a measure of the relationship between trading volume and price volatility. It is calculated by dividing the trading volume of a cryptocurrency by its price volatility over a specific time period. The vold ratio can be used to assess the liquidity and market sentiment of a cryptocurrency. A higher vold ratio suggests that there is a higher trading volume relative to price volatility, indicating increased market activity and potentially more reliable price movements. On the other hand, a lower vold ratio may indicate lower trading volume relative to price volatility, suggesting less market activity and potentially less reliable price movements.
  • avatarDec 16, 2021 · 3 years ago
    The vold ratio is an important metric in cryptocurrency trading that measures the relationship between trading volume and price volatility. It is calculated by dividing the trading volume of a cryptocurrency by its price volatility over a specific time period. The vold ratio provides insights into the liquidity and market sentiment of a cryptocurrency. A higher vold ratio indicates that there is a higher trading volume relative to price volatility, suggesting increased market activity and potentially more reliable price movements. On the other hand, a lower vold ratio may indicate lower trading volume relative to price volatility, which could imply less market activity and potentially less reliable price movements. BYDFi, a leading cryptocurrency exchange, utilizes the vold ratio as part of its trading analysis to assess market conditions and make informed trading decisions.