{"id":223242,"date":"2025-05-02T09:35:03","date_gmt":"2025-05-02T13:35:03","guid":{"rendered":"https:\/\/ibkrcampus.com\/campus\/?post_type=glossary-terms&p=223242"},"modified":"2025-05-02T09:35:04","modified_gmt":"2025-05-02T13:35:04","slug":"vix-volatility-index","status":"publish","type":"glossary-terms","link":"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/vix-volatility-index\/","title":{"rendered":"VIX (Volatility Index)"},"content":{"rendered":"\n

The VIX, officially known as the CBOE Volatility Index, measures the market\u2019s expectation of volatility over the next 30 days, derived from the pricing of S&P 500 index options. Often referred to as the \u201cfear gauge\u201d, the VIX rises when market uncertainty increases and typically falls during periods of market stability. A high VIX suggests that traders expect significant fluctuations in stock prices, while a low VIX indicates confidence and calm.<\/p>\n\n\n\n

The index does not measure actual volatility but rather the implied volatility embedded in the options market. It serves as a sentiment indicator used by institutional investors, traders, and hedge funds to hedge against market risk or to speculate on future movements. For example, if geopolitical tensions or a Fed rate decision is looming, the VIX may spike as traders anticipate potential disruptions.<\/p>\n\n\n\n

The VIX also has its own set of financial instruments, including futures, options, and ETFs, allowing investors to trade volatility directly. These instruments are often used in strategies like portfolio hedging, risk parity, and volatility arbitrage. Because it reflects expected\u2014not realized\u2014volatility, the VIX is a powerful tool in assessing market mood, even though it may not always predict the direction of price movements.<\/p>\n\n\n\n

It can be traded as both an index and through options. VIX index options trading hours are from 09:30 EST to 16:15 EST, with extended hours trading from 20:15 EST to 9:15 EST.<\/p>\n","protected":false},"excerpt":{"rendered":"

The VIX, officially known as the CBOE Volatility Index, measures the market\u2019s expectation of volatility over the next 30 days, derived from the pricing of S&P 500 index options. <\/p>\n","protected":false},"featured_media":0,"parent":0,"template":"","meta":{"_acf_changed":false,"footnotes":""},"traders-glossary":[13278,13251,13259],"class_list":{"0":"post-223242","1":"glossary-terms","2":"type-glossary-terms","3":"status-publish","5":"traders-glossary-ibkr-traders-glossary","6":"traders-glossary-trading-alphabet","7":"traders-glossary-trading-terms-v"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"\nArchives Term | IBKR Glossary | IBKR Campus<\/title>\n<meta name=\"description\" content=\"The VIX, officially known as the CBOE Volatility Index, measures the market\u2019s expectation of volatility over the next 30 days.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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