VIX Index

CBOE Volatility Index

A mathematical measure of the implied volatility of options trading on the S&P 500 index. That is, the CBOE Volatility Index attempts to measure the likelihood of option prices to vary unpredictably in the context of a particular pricing model in this case, the Black-Scholes model. A higher number on the index represents greater volatility, while a lower number represents lower volatility. While critics maintain that its usefulness is overstated, the index is considered a leading indicator of option volatility in the wider market. The CBOE Index is operated by the Chicago Board of Options Exchange, and is also known as the VIX.

VIX Index

An equity volatility measure developed in 1993 by the Chicago Board Options Exchange. The index is calculated using eight S&P 100 (OEX) option contracts, four calls and four puts, with an average time to maturity of 30 days. Many traders use the VIX as a general measure of index option volatility. Also called CBOE Volatility Index.
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The CBoE denied the validity of the manipulation charge, citing factual errors and fundamental misunderstanding of the relationship between the VIX index, VIX futures and volatility.
The Vix Index - Wall Street's "fear" gauge - had the biggest one-day spike in its history.
Historically low volatility as measured by the VIX Index is still weighing on overall fixed income, currency and commodities results because clients have not needed to re-hedge their positions.
A suite of Cboe VIX Index products covers expected volatility across asset classes: equities, fixed income, foreign exchange and commodities.
Implied volatility, as measured by the VIX index, was its lowest since the index was created in 1990, and realised volatility, as measured by the number of trading days with an intraday swing of less than 1 per cent was its lowest ever.
Furthermore, the VIX Index (which measures near-term volatility through option prices) has been historically low all year, currently reading approximately 9.
The VIX Index hit a decade low in May this year, suggesting investor confidence in the markets is more stable than commentators expected at the start of the year.
The data comprise spot and forward exchange rates (sampled monthly), the International Country Risk Guide (ICRG)'s political, financial and economic ratings and the VIX index.
The VIX index provides a measure of investor sentiment and implied market volatility.
In a sense, the VIX index communicates to the world what otherwise would only be known to options traders and options investors: how risky the major market players perceive the stock market to be over the next 30 days.
Such risks led Wall Street's fear gauge, the VIX index, to its highest close since late June on Friday.
The VIX index, a measure of risk aversion, shot up to 14 from 21 as polls showed increased support for Brexit.