Chicago Option Exchange Volatility Index

  VIX fear index – shows the state of the market, his direction and mood. The regularity of the indicator is as follows, what when the market falls, volatility index is growing, and when the market grows, volatility index is decreasing. VIX Index – ticker symbol for the Chicago Option Exchange Volatility Index, popular measure of implied instability S&P 500 index options. High value corresponds to a more volatile market and therefore more expensive options, which can be used, to pay the risk of volatility. If investors see high risks of price changes, they will demand, for a large premium to insure against such a change, selling variants. Often called the Fear Index, this represents one measure of market expectations for volatility over the next 30 day period.