Forex News What are Volatility Indices

[Wesse]

The Volatility Index (VIX) is widely considered the foremost indicator of stock market volatility and investor sentiment.

It is a measure of the market's expectation of near term volatility of the prices of S&P 500 stock index options.

 

[Lene Hutmacher]

The CBOE Volatility Index (VIX) is a market index used to measure the general volatility of the stock market as implied by the S&P 500 Index Options over time.
The VIX is a great tool to determine the overall market sentiment and can be used as a tradable instrument.