Whenever you start seeing the Cboe Volatility Index ($VIX) featured in financial media headlines, you know the market environment is getting turbulent. Also known as the “fear index” or “fear gauge,” the VIX is widely referenced as a touchpoint for investor sentiment. Generally speaking, a higher VIX means investors are panicking - while a lower VIX corresponds with periods of relative calm on Wall Street (remember those…?).
For the uninitiated - or anyone who just needs a refresher - learn more below about what is the VIX, how it’s calculated, how you can trade its big directional moves (and whether you should), and how this closely followed metric impacts your portfolio.
