Investor Glossary-vixInvestor Glossary-vixInvestor Glossary-vixInvestor Glossary-vixInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

VIX

The HTML to link to this page
 

VIX is the CBOE Volatility Index, created by the Chicago Board Options Exchange as a measure of equity market volatility. The VIX was introduced in January 1986. Since January 1993, the VIX has been computed in real time throughout the trading day. The computation of the value of VIX is based on the implied volatility of eight option series on the S&P 100 index, or OEX. The VIX is quoted in percentage points per annum. For instance, a VIX value of 19.28 represents an annualized implied volatility of 19.28%. The VIX is sometimes called the investor fear index, since investor uncertainty can lead to high market volatility through drops in prices, such as happened on Black Monday in 1987. Options are traded on the VIX, enabling additional hedging and speculation positions on volatility. Closely related to the VIX are the VXD, or CBOE Dow Jones Industrial Average Volatility Index, and the VXN, or CBOE NASDAQ 100 Volatility Index.



Rate this VIX definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, annual return, 144a, dividends payable, diluted share, 1031 exchange, APR, retained earnings, open position, 401a, 1035 exchange, irrevocable trust, labor relations, stock split, covered put, deferred revenue, liquidity ratio, LIBOR, margin rate, current ratio, per diem, implied volatility, required rate of return, minority interest, phantom income, limit order, deferred tax, cancelled check, inflation, risk management, EBITDA, class C shares, Key Rate Duration, option premium, stock market close, real GDP, ex-dividend date, balance sheet, Zero Cost Collar, quality assurance, in escrow, debt service coverage, FTSE, ex-dividend, wholly-owned subsidiary, reverse mortgage, FICO score, VIX, command economy


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use