Plain-English definitions, reviewed by an independent investor
VIX (Volatility Index)
The VIX is the market’s gauge of expected near-term volatility, often called the “fear index.”
The VIX is the market’s gauge of expected near-term volatility, often called the “fear index.”
(Implied volatility from S&P 500 options)
Why it matters
It is the quick read on how anxious the market is right now.
Common confusion
A low VIX can breed complacency; a spike signals fear, not a forecast of direction.
Frequently Asked Questions
High VIX meaning?
Expect bigger swings ahead; often rises when stocks fall.
Can I buy the VIX?
Not directly; via futures or ETFs that track it, with real complexity.