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Volatility Index (VIX)

Real-time volatility index that represents market expectations for the relative strength of short-term price fluctuations in the S&P 500 Index (SPX). It generates a 30-day forward estimate of volatility as it is generated from the pricing of SPX index options with near-term expiration dates. Volatility is frequently used to evaluate market sentiment, particularly the level of anxiety and fear among market players. The index is more frequently referred to the fear indicator, or simply as the VIX. It was founded by the Cboe Options Exchange (Cboe) and is managed by Cboe Global Markets. It is an important index as it offers a measurable gauge of market risk and investor sentiment.


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