Glossary · from the DESK dictionary
VIX
An index calculated by the CBOE that measures the S&P 500's implied 30-day volatility.
In plain words
Also called the "fear index" — typically spikes sharply during periods of market stress.
In more detail
The VIX measures the expected 30-day fluctuation derived from S&P 500 options, annualised. It is called the fear gauge, which is only half right: it rises above all because demand for protection rises — so it measures the price of protection, not fear itself. Importantly it is not tradable; any position on it runs through futures with their own curve dynamics.
Example
A VIX of 20 implies an expected annual fluctuation of 20 percent, or roughly 1.25 percent per trading day. If it rises to 40, the market expects daily moves of 2.5 percent.
What it means for traders
The most widely watched volatility indicator of all, often used as a proxy for general market nervousness.
Common pitfalls
The VIX only measures the S&P 500's expected volatility, not that of individual stocks or other asset classes.
Related terms
CBOE (Chicago Board Options Exchange) · Implied Volatility (IV) · MOVE Index · SKEW Index · Variance Swap · VIX Futures · Volatility Index · Volatility-Linked Note · VSTOXX · VVIX (Volatility of Volatility)
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.