Volatility index
Also called: India VIX, VIX, fear index
An index calculated from index option prices that measures the market's expected volatility over a coming period.
In India, NSE publishes India VIX. A rising volatility index means index options are becoming more expensive because larger moves are expected. It measures expected movement, not the direction of the market.
Learn more in these lessons
- Historical and implied volatilityWhat is implied volatility, and why does it matter so much for option prices?
Related terms
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