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What does vix panic index mean?
Vix panic index is an index launched by Chicago Board Options Futures Exchange, which aims to give an early warning of the impending crash. Through this index, people can know the market's expectation of market fluctuation in the next 30 days (because only the expected value of the market exists before the fluctuation occurs). Because VIX is usually used to assess future risks, this volatility index is also called the panic index.

1. Because VIX is usually used to evaluate future risks, this volatility index is also called panic index. Recently, with the sharp decline of US stocks, this index has doubled continuously, so it has become a safe haven for the market. The trend of panic index is basically opposite to that of individual stocks in the market. When it is higher, it means that investors expect the volatility of the index to intensify in the future. On the contrary, when it begins to weaken, it also means that investors expect the fluctuation of the index to slow down in the future and the index will fall into a consolidation period. Its rise reflects the view of the vast majority of investors on the future, that is, the higher the rise, the more serious the market crash will be. Generally speaking, the panic index vix is basically the same as its name. Its rise is often closely related to the market, that is, the overall trend is contrary to the market, and the more the market panics, the more it can rise.

2. Although VIX index is usually called "panic index", a higher VIX value does not represent a bear market. On the contrary, VIX index is a measure of market volatility, including positive changes. In fact, when investors expect a big positive fluctuation, they are reluctant to sell up call options unless they get a large extra fee for it. Option buyers will be willing to spend a lot of money to buy options only when the expected price rises sharply. When the market thinks that the possibility of rising and falling is similar, the risk of selling any option to the seller is the same. A high VIX index means that investors think the market will fluctuate violently, both positive and negative. When investors expect that the market may fluctuate greatly, the VIX index has the highest value. Only when investors think that there will be neither greater downside risk nor greater upside possibility will the VIX index go down.