Implied Volatility vs Realized Volatility

Quick comparison to help you distinguish these two crypto terms.

Implied Volatility
advanced
market_structure

Market-derived volatility estimate from cryptocurrency options pricing reflecting collective trader expectations of future price movement intensity, revealing whether options are underpriced or overpriced.

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Realized Volatility
intermediate
technical_analysis

Historical cryptocurrency price volatility actually experienced over recent periods, measuring actual price movement magnitude from which traders assess risk and compare to implied volatility for options valuation.

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