The financial world relies heavily on indicators to gauge market sentiment and predict future trends. Among these, the Volatility Index, commonly known as the VIX, stands out as a prominent measure of market anxiety.
Originating from the Chicago Board Options Exchange, the VIX is an index that represents the market’s expectation of 30-day forward-looking volatility. Calculated from the implied volatilities of a wide range of S&P 500 index options, a high VIX typically signals heightened investor fears, while a low reading suggests a calm market.
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