Understanding the CBOE Volatility Index (VIX) in Investing
What Is the CBOE Volatility Index (VIX)?
The CBOE Volatility Index (VIX) is a real-time market index extensively used by investors to evaluate market sentiment and perceived risk. By representing the expected volatility of the S&P 500 over the next 30 days, the VIX acts as a barometer of investor fear and uncertainty, making it a crucial indicator in assessing market dynamics.
The index is more commonly known by its ticker symbol and is often referred to simply as “the VIX.” It was created by the CBOE Options Exchange and is maintained by CBOE Global Markets. It is an important index in the world of trading and investment because it provides a quantifiable measure of market risk and investors’ sentiments.
