Different synthetic-index families use numbers to describe different characteristics.
Boom and Crash 300 / 600 / 1000
For Boom and Crash indices, 300, 600 and 1000 refer to the average expected number of ticks between spike or crash events.
A lower number means the event is designed to occur more frequently on average.
The interval is not fixed.
For example, Boom 300 does not guarantee an upward spike exactly every 300 ticks.
Volatility 50 / 75 / 100
Volatility indices use a different naming system.
The current family includes:
- Volatility 50;
- Volatility 75; and
- Volatility 100.
The number represents the synthetic index's target volatility level.
Volatility 100 therefore has a higher target volatility setting than Volatility 75 or Volatility 50.
Boom/Crash numbers and Volatility numbers describe different product characteristics and should not be interpreted in the same way.