CFDs on Gold (US$ / OZ)
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Divergence Secrets

43
How Volatility Affects Profits

Volatility (VIX or IV) is another major factor.

You profit when:

IV goes up after you buy options

IV goes down after you sell options

High volatility = high premium
Low volatility = low premium

This is why buying options ahead of big events (Budget, elections, results) is riskier—IV may crash afterward.

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