The Volatility Index gauges fear or pessimism in the S&P 500 over a 30 day period, providing a measure of expected stock market volatility.
Live Volatility Index (VIX) Chart
Below, a live chart of the VIX.
Spread Betting and the Volatility Index: Gauging Fear
According to Joshua Raymond, Market Strategist, City Index, “A high VIX indicates trader fear and a low VIX indicates trader calm”.
In general, the Volatility Index rises during periods of financial stress and falls in less anxious times, giving an indication of the percentage the markets are expected to move up or down by.
For example, in January 2011 the FTSE 100 hit new 32 month highs before falling 4.5%.
The Volatility Index is widely seen as a way of predicting this kind of near-term volatility, and so traders who follow the VIX may have been better prepared for the trading activity that ensued during January.
'Spread Betting and the Volatility Index' last update by James White, 20-Feb-2017
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Market volatility can be gauged using the volatility index (VIX) so spread betting investors can use the VIX to...go to top.
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