Pros and Cons of Trading The VIX Index
The VIX Volatility Index or Vix for short is a measure of expected volatilty in the US stock market, and is used by traders to determine when to enter and exit markets. This article, looks at the pros and cons of using the Vix Index as a trading tool so you can decide if it’s right for your own trading strategy. What Is The VIX Index? The VIX Index is a measure of expected volatility in the US stock market, calculated by the Chicago Board Options Exchange (CBOE). It’s based on real-time prices of options on the S&P 500 index and provides a useful gauge of investor sentiment. It’s also referred to as the “investor fear gauge” since it tends to move up when markets are unstable or uncertain. Why Trade The Vix Index? Trading the VIX Index can offer a variety of advantages. It provides an opportunity to take advantage of market volatility quickly and easily, as well as a chance to speculate on the future direction of the S&P 500 . Additionally, it is often used as an indica