Derivatives & Risk

What is implied volatility in crypto options?

Implied volatility is the market's expectation of how much a crypto asset's price will move over the life of an option, derived from the option's current price rather than from past data. Higher implied volatility means options are priced for larger expected swings, which raises their premiums; lower implied volatility reflects calmer expectations. For example, two otherwise identical options can carry different premiums purely because the market expects one underlying to move more sharply. It signals expected movement, not direction, and reflects expectation rather than any certainty about future prices.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.