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.”
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.
This content is restricted to site members. If you are an existing user, please log in. New users may register below for FREE.