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VIX (Volatility Index)

A gauge of the S&P 500's expected volatility over the next 30 days, based on option prices.

Macro & RatesIntermediate

Definition

The VIX is often called the fear gauge. It tends to rise when stocks fall and spike in sell-offs. Its long-run average is roughly in the high teens, so readings in the 30s and above signal stress.

Watch out for

It measures expected movement in either direction, not the direction of the market, and it cannot be bought directly. Products that track it behave differently from the index.

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