Technical Definition

Volatility Index

A volatility index measures expected price fluctuations in a market.

By Crypto University Editorial
VolatilityRisk Management

Key Insight

Higher volatility usually means higher risk and opportunity.

Common Misconceptions

Ignoring volatility before using leverage

Detailed Explanation

How It Works

Derived from options or historical data.

FAQs

Does high volatility mean price will rise?
No.

In Practice

Crypto volatility spikes during major news events.