Market structure & regulation
What is India VIX?
Also called: Fear index
Hinglish mein padhein: India VIX kya hai?
India VIX is NSE's volatility index. It estimates how much the Nifty is expected to move over the next 30 days, based on option prices.
A VIX of 15 roughly means the market expects Nifty to move within about ±15% over a year (about ±4.3% over a month) with around two-thirds probability.
VIX usually rises when markets fall sharply and fear increases, which is why it is nicknamed the fear index.
Related terms
- VolatilityVolatility measures how much and how quickly a price moves. Higher volatility means bigger swings in both directions.
- Options (call and put)An option gives the buyer the right, but not the obligation, to buy (call) or sell (put) at a strike price before expiry. The seller takes the obligation.
- Implied volatility (IV)Implied volatility is the market's expectation of future volatility, backed out from option prices. High IV means expensive options.