Is Vega always positive?

BTCC, a leading cryptocurrency exchange, offers a comprehensive suite of services that cater to the diverse needs of investors and traders in the digital asset space. Among its offerings, BTCC provides spot trading, allowing users to buy and sell cryptocurrencies at prevailing market prices.

In addition to spot trading, BTCC boasts a robust futures trading platform, enabling traders to speculate on the future price movements of cryptocurrencies. Furthermore, BTCC offers a secure wallet solution, ensuring the safety and accessibility of digital assets for its users.

The vega of an option, a crucial measure in financial derivatives, is inherently positive. This characteristic stems from the fundamental understanding that when volatility escalates, the value of protection or insurance provided by options naturally escalates as well.

Intuitively, as the market becomes more unpredictable and volatile, investors seek greater security against potential losses. Options, as a form of insurance, offer precisely this protection, thereby justifying an increase in their price.

When volatility surges, the cost of hedging or insuring against adverse price movements also rises. This phenomenon directly translates into a higher premium for options, as they serve as a vehicle for mitigating risk.