汇刃FXKiller
VIX is volatility index compiled by Chicago Board Options Exchange (CBOE), measuring market expectations of 30-day volatility for S&P 500 index. VIX is known as "fear index" or "fear gauge"; high VIX indicates market panic and high volatility expectations, low VIX indicates calm markets.
VIX calculated based on implied volatility of S&P 500 index options VIX = 100 × √(Σ[ΔKi/Ki² × e^(RT) × Q(Ki)]) Where: Ki = Strike price of ith option ΔKi = Strike price interval Q(Ki) = Mid-price of option R = Risk-free rate T = Time to expiration (30 days) Note: Actual calculation very complex, involving options at multiple strikes
VIX Index: 30-day volatility expectation for S&P 500
VIX Futures: Futures contracts on VIX
VIX Options: Options based on VIX
VIX ETF/ETN: Exchange-traded products tracking VIX
VIX < 15: Calm market, low volatility expectation, possible complacency
VIX 15-20: Normal volatility level
VIX 20-30: Market tension, increasing volatility
VIX > 30: Market panic, high volatility expectation
VIX > 40: Extreme panic, possible buying opportunity (contrarian indicator)
VIX Spike: Escalating market panic, stocks may plunge
VIX Decline: Easing market panic, stocks may rebound
VIX is primarily used for risk management and market sentiment analysis. VIX typically has negative correlation with stocks: VIX rises when stocks fall, VIX falls when stocks rise. VIX can serve as contrarian indicator; when VIX reaches extreme highs (>40), may be opportunity to buy stocks. VIX also used for hedging strategies, hedging stock portfolio risk through VIX futures or options. Many traders monitor VIX trends and extremes as reference for market sentiment. VIX cannot be traded directly, but can be traded indirectly through VIX futures, options, or ETFs.
Measures market panic level, risk management tool, can serve as contrarian indicator, widely recognized, real-time reflection of market sentiment
Only applicable to US stock market, cannot directly trade VIX index, VIX derivatives differ from VIX index, may fail in extreme situations, requires understanding of options and volatility
What Exactly Is Multi-Factor Stock Selection? Understanding the Three-Layer Scoring Logic from Market to Sector to Indiv...
The Harshest 'Mantra' in Trading: No Ceiling on Rises, No Floor on Falls! In-Depth Review of the YYB Incident and Painfu...
Five Key Cognitions in Trading: Calibrate Your Trading Navigation In trading, let's set aside complex theories and pursu...
USD/INR appreciates on Wednesday after registering modest losses in the previous session. However, the upside of the pai...
Philip Wee at DBS Group Research highlights an upside bias in EUR/USD, expecting the pair to oscillate around 1.19 rathe...
MUFG’s Michael Wan notes that softer US data have pushed US 10-year Treasury yields lower and led Fed fund futures to fu...
Join FX Killer to learn how to properly use technical indicators for trading decisions