Volatility is a kind of data used to measure the price fluctuation and yield uncertainty of financial assets, and to reflect the risk level of financial assets. vix volatility index is one of the most common ones. Volatility plays a very important role in the pricing, trading strategy and risk control of financial derivatives.

What does vix Volatility Index mean?

Vix is a market volatility index created and used by Chicago Board Options Futures Exchange, which can reflect investors' expectations of market volatility in the next 30 days. The index is based on the fact that the lower the S index, the slower the stock index changes.

Vix index is an index used to measure market risk and investor panic, but it will significantly underestimate the actual market fluctuations without assumptions. The greater the market fluctuation, the more serious the underestimation, which has a negative impact on investors.