What Is the Cboe Volatility Index (VIX)?

The Cboe Volatility Indicator (VIX) is a real-time index that measures the market’s expectations for the relative strength of S&P 500 index price movements in the near future (SPX). It generates a 30-day forward prediction of volatility since it is generated from the values of SPX index options with near-term expiration dates. Volatility, or the rate at which prices move, is frequently used to assess market mood, particularly anxiety among market players.
The index is typically referred to simply as “the VIX” and is more well recognized by its ticker symbol. The Chicago Board Options Exchange (CBOE) developed it, and Cboe Global Markets maintains it. It’s a crucial index in the trading and investing industry since it gives a quantitative gauge of market risk and investor mood.