Full formBusiness & Corporate
VIXstands forVolatility Index
Full Form of VIX
What is VIX?
The Volatility Index, commonly known as VIX, is a widely tracked measure of market volatility and investor sentiment, often referred to as the 'fear gauge' of the financial markets. Originally introduced by the Chicago Board Options Exchange (CBOE), the VIX reflects the expected 30-day volatility of the S&P 500 index based on near-term options pricing. In India, the National Stock Exchange (NSE) launched its own version called India VIX, which measures the expected volatility of the NIFTY 50 index over the next 30 days using similar methodology. Indian traders, portfolio managers, and retail investors closely monitor India VIX to assess market sentiment, anticipate corrections, and manage risk exposure. A rising India VIX indicates heightened fear and uncertainty, while a declining value suggests calm and bullish confidence. The index is extensively used in options trading, hedging strategies, and derivative pricing. It is also a key concept for students preparing for finance certifications such as NISM, NCFM, CFA, and various stock market courses offered across Indian financial training institutes.
VIX का फुल फॉर्म
अस्थिरता सूचकांक
Example
India VIX surged past 18 last week as global trade tensions triggered panic selling across Dalal Street.
VIX — frequently asked questions
What is the full form of VIX?
The full form of VIX is Volatility Index, created by the Chicago Board Options Exchange to measure expected market volatility over 30 days.
What is India VIX and how is it different from US VIX?
India VIX is the Indian equivalent of the VIX, published by the NSE. It measures the expected volatility of the NIFTY 50 index, whereas the original US VIX tracks the S&P 500.
How is the VIX calculated and interpreted?
VIX is calculated using the prices of near-term index options. A value above 20 generally indicates high fear and volatility, while a value below 12 suggests a calm and stable market.