What is the VIX Index?

The VIX Index, or Volatility Index, is a market indicator that measures the market’s expectations of short-term volatility in the S&P 500. It is commonly called the “fear gauge” or “fear index” because VIX levels tend to rise when investors expect greater uncertainty and larger price movements in the stock market.

• A higher VIX generally indicates increased expected volatility
• Whereas a lower VIX suggests relatively lower expected volatility. 

Note: VIX does not indicate whether the market will move up or down. It only measures the expected magnitude of price fluctuations. Several traders use it only as an indicator for assessing prevailing market uncertainty.

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