VIX – What Does Current Volatility Mean For The Trader

VIX There has been much talk of the VIX and the current levels of volatility within the markets. What does this mean for you the trader? Firstly we have to understand what the VIX actually is.

VIX is a trademarked ticker symbol for the Chicago Board Options Exchange Market Volatility Index, a popular measure of the implied volatility of S&P 500 index options. The VIX is a widely used measure of market risk and is often referred to as the “investor fear gauge.”

VIX

When trading, especially in the short term, it is very important to understand how the VIX, volume and volatility will impact your trading as we step in the Christmas. Although the VIX indicates ‘fear’ it does not mean that you should fear the market conditions, if anything with adequate risk reward you can use this to your advantage.

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Steve Ruffley
Steve has been involved in the finance industry for well over a decade. From running live trading floors in the City at Schneiders, risk managing & mentoring traders at Refco to trading his own account, live, he has a wealth of knowledge on trading. Steve has been the head of education and Chief market strategist at Intertrader.com for the last 4 years.
Steve presents live trading webinars up to 20 times a month and over the last 4 years has presented over 650 live webinars. Nominated for the best presenter award 2014 on FXStreet.com and is the author of the soon to be published ‘Ruff Guide to trading’

Steve Ruffley

Steve has been involved in the finance industry for well over a decade. From running live trading floors in the City at Schneiders, risk managing & mentoring traders at Refco to trading his own account, live, he has a wealth of knowledge on trading. Steve has been the head of education and Chief market strategist at Intertrader.com for the last 4 years. Steve presents live trading webinars up to 20 times a month and over the last 4 years has presented over 650 live webinars. Nominated for the best presenter award 2014 on FXStreet.com and is the author of the soon to be published ‘Ruff Guide to trading’

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