Thread: Implicit Volatility Quotes in Forex

Does anyone know where I can get free quotes of implied volatility in Forex? Before I used the FXCM news plugin (IFR Thomson

I've been looking for sources since they removed that plugin and the truth is that I haven't found any free options that are complete and up-to-date. Most websites offer historical but not implicit volatility data. It's frustrating because this data can make a difference, especially before high-impact events. If anyone knows an API, site, or indicator that works well, it would be greatly appreciated.

Once I tested CME options data to calculate IV indirectly, but it is a mess if you have no experience in derivatives. Besides, it is not in real time. It seems that the only “reliable” way to get this data for Forex is to subscribe to premium services. Which is not feasible for all retail traders.

I have found some pages that offer estimated IV values for older pairs such as EUR/USD or GBP/USD, but only as part of weekly reports. It is not useful if you want to analyze volatility changes in specific sessions or intraday entries. It is more to have a general idea.

One option I'm exploring is to create a model of my own based on the behavior of the ATR and the candles of the last few days. I know it's not real IV, but at least it's useful to detect possible compressions before price explosions.

In the end, using implied volatility in Forex is almost like having a superpower, but without access to the suit. Everything is reserved for institutional ones. What most outrages me is that no one seems interested in opening this data to the general public, not even with an acceptable delay.

I've talked to several traders who operate options and they tell me that in the spot market no one pays attention to the IV. And that's a mistake. That's right there where you could get ahead of movements, especially at low liquidity crossings.

Once I downloaded an indicator from TradingView that promised to show implicit volatility, but it turned out to be just a combination of ATR and RSI. I don’t understand why there’s so much misinformation about this on popular platforms. It doesn’t cost so much to tell the truth.

I am about to create a shared database where we can manually record and estimate the IV with the help of formulas, options spreads and ATR. It will not be accurate, but at least it allows us to have an idea of when the market is expecting something big. If someone wants to collaborate, let me know.

I have written to the support of several brokers asking if they plan to include this metric on their platforms. Most don’t even know what it is. Sad that they offer 200 useless indicators and can’t include a data as crucial as the IV.