TM
Tidimalo M

1 reviews | Active since Jul 2025

19 Jul 2025, 11:14

I’m still trying to understand the market why the Volatility 75 has been on a downward for 3 years now

I’m still trying to understand the market why the Volatility 75 has been on a downward for 3 years now. What is causing this as it’s not affected by the news. However I enjoy that withdrawals time are shorter. I appreciate that .

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Replies (1)
Deriv
Deriv's reply19 Jul 2025, 18:16
Official
Hi Tidimalo,

Thank you for your review.

In regards to your comment, please note that Vol250 is designed to move randomly, with no bias toward going up or down. However, how the chart displays this movement can affect how it looks.
 
Most trading platforms use a linear Y axis, where equal distances represent equal price changes — not equal percentage changes. This can make large price drops look more dramatic at higher levels. For example, a fall from 10,000 to 1,000 looks much steeper than a drop from 100 to 10, even though both are 90% declines.
In addition, percentage-based changes behave differently:
 
 A 50% drop from 100 to 50 only needs a 50-point move — but recovering back to 100 requires a 100% gain. This means rebounds appear slower or weaker, especially at lower prices. Even small downward moves can look steep, while upward moves must be larger to catch up.
 
To get a more accurate view, we recommend switching to a logarithmic Y axis, which reflects percentage changes more clearly.

We hope this was helpful! Thank you again for taking the time to leave us a review.