What is volatility?

Decoding the VIX: A Deep Dive into the Market’s Volatility Indicator In the landscape of financial indicators, the VIX stands out as a beacon for investors seeking to understand the market’s mood. Often labeled the “Fear Index,” the VIX serves as a thermometer, measuring the temperature of market sentiment and anticipated volatility. Definition The Volatility …

Understanding Volatility in the Financial Markets Volatility, a term frequently used in the financial world, refers to the degree of variation observed in the price of a security or market index over a specific period. It’s a measure of the asset’s risk and uncertainty, indicating the speed and magnitude of its price changes. Let’s break …