Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Crypto Exchanges => Topic started by: Tnoy30 on October 26, 2021, 02:01:56 PM
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Here’s how options traders would play the “very high volatility” that Binance founder Changpeng Zhao suggested will impact the crypto market over “the next few months.”
Volatility is a complex statistical measure commonly used by traders and investors. Those unfamiliar with it will likely attribute some sort of special “standing” to analysts whenever the term is used. However, as shown in a recent comment by Binance exchange founder Changpeng Zhao, most of the time, people are clueless about what volatility means.
Source: Binance CEO expects ‘very high volatility’ in crypto. Here’s how to trade it
(https://cointelegraph.com/news/binance-ceo-expects-very-high-volatility-in-crypto-here-s-how-to-trade-it)
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At present, there is no instability in the price increase of Binans.The way the price of Binans coin is increasing, maybe in a few days the price of this coin will go back to the previous level. This indicator might sound counterintuitive, but lower volatility periods represent a more significant risk of explosive moves. That is partially due to realized volatility being a backward-looking indicator. During quieter periods, traders tend to over-leverage, which then causes larger liquidations during sudden price moves.