VIX has a particular significance in relation to IG's platform. Here, we define VIX in general investing and explain what it means to you when trading with IG.
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VIX is short for the Chicago Board Options Exchange Volatility Index. It is a measure used to track volatility on the S&P 500 index, and is the most well-known volatility index on the markets.
A volatility index is a measure of a particular market’s likelihood of making sudden, unexpected price movements, or its relative instability. The VIX does this by aggregating the implied volatility on a set number of put and call options based on the S&P 500.
The implied volatility of these options is used to calculate a numerical figure for overall 30-day volatility of the S&P 500, which is in turn used as an indicator of general market sentiment. If the VIX gives a value of greater than 30 then the market is seen as volatile, while under 20 is believed to be calm.
As well as the VIX, the Chicago Board Options Exchange has launched:
Other major indices around the world will often have their own volatility index.
Our indices trading includes both the VIX, listed under Volatility Index, and the EU Volatility Index. Find them listed alongside other indices on our platform.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.