What is VIX index?
VIX index (aka. CBOE Volatility Index) is one of the most common barometers that measures the stock market’s volatility, based on the S&P 500 index and calculated by the Chicago Board Options Exchange.
It will project the volatility of the S&P 500 index. When the index spikes, it might affect that the market is experiencing a panic sell situation. On the contrary, it becomes calm and steady, and the market returns to normal.
It is a splendid tool to determine how the market currently acts and assists in the securities to decide to take a long and short position.
Why would I use this tool as a reference?
This tool could be a lifesaver to us. As ordinary investors, our portfolio is crucial to us. It will indicate how the investor act in the overall stock market in the United States.
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