Accessing Wealth-Creation Opportunities Through Market Volatility
Thursday,30/06/2022|12:38GMTby
FM
Volatility is the primary incentive for traders to participate in the financial markets.
Cryptocurrencies are inherently and, as posterity would indicate, irrevocably volatile; writing for Forbes in 2013, journalist Timothy Lee penned a polemic about the perils of Bitcoin volatility, however sought to reassure readers that this was largely due to its relative infancy, and the fact that it was, at the time of writing, a “startup currency”.
Almost a decade on, and various dalliances with a >$1trillion market cap later, one thing can be held as an immutable truth about Bitcoin; its volatility is here to stay, and can’t be attributed solely to its longevity (or lack thereof), in the wishful hope of its dissipation over time.
Whilst for many (especially more seasoned) traders, volatility is the primary incentive for them to participate in the financial markets, there are those for whom the volatility inherent to Bitcoin and the wider crypto market serves as an obstacle to adoption; it can lead to a reticence and a reluctance to enter the digital asset investment space, with risk averse traders seeking the safety and security of more stable, stationary assets.
Volatility; A Sheep in Wolf's Clothing
However, as counter-intuitive as it may seem, disregarding crypto markets on account of their volatility is often, to amend an age-old adage, akin to throwing the bathwater out with the baby.
Consider the inverse scenario, and the landscape we would find ourselves in were there to be a scarcity of volatility, and therefore price movements, within the crypto markets, as opposed to an abundance: without substantial movements in price, traders would find themselves without opportunities to achieve substantial profits.
The opportunities presented by market volatility are so well established, and experienced traders have been savvy to them for so long, that Investodia have even compiled a list of the most widely used and well-known trading strategies which investors employ to capitalise on market fluctuations.
Notable amongst those strategies outlined by Investopedia is the one entitled “Using Volatility Index (VIX) Options and Futures”; it stands out amongst the others in that it allows traders to profit not from the fluctuations in price of an asset, but from the very fact that the prices will fluctuate at all. In Investopedia’s own words, “VIX options and futures allow traders to profit from the change in volatility regardless of the underlying price direction.”
The implications of this are profound, and particularly pertinent to the crypto markets; trading the Bitcoin VIX, for example, means that investors don’t need to speculate on which way the price of Bitcoin will move - an endeavor reminiscent of Warren Buffett’s infamous “Monkeys throwing darts” axiom. Rather, all they will need to do is take a view on whether there will be volatility in the markets at all - a far more probable proposition.
Opportunity from Chaos
As it stands today, the only trading platform to offer investors access to the Bitcoin VIX is Globe Exchange; a crypto derivatives exchange, offering an array of perpetual markets where traders can leverage their capital up to 100X.
The methodology behind Globe’s BTC-VIX is derived from the Chicago Board Options Exchange White Paper, which relies on gathering bid and ask quotes for options expiring between 23 and 37 days from the current point in time and reversing out the volatility implied by the options prices with a structured weighting and blending methodology to settle on an 30-day forward looking implied volatility.
Every individual investor or trader will have their own appetite for risk, but greater availability of data, information, and educational resources means that more well informed decisions can be made when looking to access the opportunities presented by unpredictable and constantly-fluctuating markets.
For example, in late 2020 Globe Research also produced a research report showing Bitcoin implied volatility on a 5 minute time horizon is modestly predictable from price, volatility momentum and alternative data including sentiment and engagement. In addition, it’s worth highlighting at this point that the implied volatility of Globe’s VIX futures market is considerably greater than that of the S&P 500, thereby providing even greater trading opportunities.
Whilst a more up-to-date report, factoring in recent volatility events, may alter the conclusions and inductions of this research, the fact remains demonstrably true that institutions are committed to educating their users, and providing traders with the resources needed to demystify markets and access previously unobtainable opportunities.
Through this, and through the access they provide to exotic and novel markets such as the BTC-VIX, exchanges such as Globe are empowering a new generation of investors to achieve wealth-creation opportunities not just from speculating on future asset prices, but from the inherently volatile nature of cryptocurrency markets, regardless of the direction in which prices happen to be moving on a given day.
Cryptocurrencies are inherently and, as posterity would indicate, irrevocably volatile; writing for Forbes in 2013, journalist Timothy Lee penned a polemic about the perils of Bitcoin volatility, however sought to reassure readers that this was largely due to its relative infancy, and the fact that it was, at the time of writing, a “startup currency”.
Almost a decade on, and various dalliances with a >$1trillion market cap later, one thing can be held as an immutable truth about Bitcoin; its volatility is here to stay, and can’t be attributed solely to its longevity (or lack thereof), in the wishful hope of its dissipation over time.
Whilst for many (especially more seasoned) traders, volatility is the primary incentive for them to participate in the financial markets, there are those for whom the volatility inherent to Bitcoin and the wider crypto market serves as an obstacle to adoption; it can lead to a reticence and a reluctance to enter the digital asset investment space, with risk averse traders seeking the safety and security of more stable, stationary assets.
Volatility; A Sheep in Wolf's Clothing
However, as counter-intuitive as it may seem, disregarding crypto markets on account of their volatility is often, to amend an age-old adage, akin to throwing the bathwater out with the baby.
Consider the inverse scenario, and the landscape we would find ourselves in were there to be a scarcity of volatility, and therefore price movements, within the crypto markets, as opposed to an abundance: without substantial movements in price, traders would find themselves without opportunities to achieve substantial profits.
The opportunities presented by market volatility are so well established, and experienced traders have been savvy to them for so long, that Investodia have even compiled a list of the most widely used and well-known trading strategies which investors employ to capitalise on market fluctuations.
Notable amongst those strategies outlined by Investopedia is the one entitled “Using Volatility Index (VIX) Options and Futures”; it stands out amongst the others in that it allows traders to profit not from the fluctuations in price of an asset, but from the very fact that the prices will fluctuate at all. In Investopedia’s own words, “VIX options and futures allow traders to profit from the change in volatility regardless of the underlying price direction.”
The implications of this are profound, and particularly pertinent to the crypto markets; trading the Bitcoin VIX, for example, means that investors don’t need to speculate on which way the price of Bitcoin will move - an endeavor reminiscent of Warren Buffett’s infamous “Monkeys throwing darts” axiom. Rather, all they will need to do is take a view on whether there will be volatility in the markets at all - a far more probable proposition.
Opportunity from Chaos
As it stands today, the only trading platform to offer investors access to the Bitcoin VIX is Globe Exchange; a crypto derivatives exchange, offering an array of perpetual markets where traders can leverage their capital up to 100X.
The methodology behind Globe’s BTC-VIX is derived from the Chicago Board Options Exchange White Paper, which relies on gathering bid and ask quotes for options expiring between 23 and 37 days from the current point in time and reversing out the volatility implied by the options prices with a structured weighting and blending methodology to settle on an 30-day forward looking implied volatility.
Every individual investor or trader will have their own appetite for risk, but greater availability of data, information, and educational resources means that more well informed decisions can be made when looking to access the opportunities presented by unpredictable and constantly-fluctuating markets.
For example, in late 2020 Globe Research also produced a research report showing Bitcoin implied volatility on a 5 minute time horizon is modestly predictable from price, volatility momentum and alternative data including sentiment and engagement. In addition, it’s worth highlighting at this point that the implied volatility of Globe’s VIX futures market is considerably greater than that of the S&P 500, thereby providing even greater trading opportunities.
Whilst a more up-to-date report, factoring in recent volatility events, may alter the conclusions and inductions of this research, the fact remains demonstrably true that institutions are committed to educating their users, and providing traders with the resources needed to demystify markets and access previously unobtainable opportunities.
Through this, and through the access they provide to exotic and novel markets such as the BTC-VIX, exchanges such as Globe are empowering a new generation of investors to achieve wealth-creation opportunities not just from speculating on future asset prices, but from the inherently volatile nature of cryptocurrency markets, regardless of the direction in which prices happen to be moving on a given day.
SMX's 1900% Surge Since November Is Not a Momentum Trade; It's Based on Transformative and Deliverable Techology
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
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Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
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Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
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He closes with a clear message: fraud is scaling, and so must the tools that stop it.
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We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
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Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
