VIX (Volatility Index) Definition

The VIX is an index that measures expected volatility in the U.S. stock market based on S&P 500 index options.

What is the VIX?

It is often referred to as the market's fear gauge, with higher readings reflecting greater expected volatility.

The VIX tends to rise during periods of market uncertainty and fall during calmer conditions.

A sharp rise in the VIX during a market sell-off reflects increased expected volatility among investors.

Value investing is an investment strategy focused on buying securities that appear undervalued relative to their intrinsic worth.

Volatility refers to the degree of variation in an asset's price over a given period of time.

Volume is the total number of shares, contracts, or units of an asset traded during a specific period.