VIX (Volatility Index)
InvestingGlossary term
Definition
A measure of expected market volatility based on S&P 500 options prices. Often called the 'fear index.' High VIX indicates investor uncertainty and expected turbulence.
Related terms
- Market VolatilityThe degree of price fluctuation in financial markets. High volatility means large price swings, indicating uncertainty or risk. Measured by the VIX (Volatility Index).
- S&P 500A stock market index tracking the 500 largest US companies. Widely used as a benchmark for the overall stock market and the basis for many index funds.
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