InvestorQ : How important is Volatility Index (VIX) for traders and investors?
Deepa Salunkhe made post

How important is Volatility Index (VIX) for traders and investors?

Answer
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sarah Leo answered.
2 years ago


When you read any report on the stock markets, it is quite common to see comments that the volatility index has shifted. As we all know, the VIX is calculated by the NSE on a real time basis and is published on their website. But the questions are much larger. What exactly is the concept of VIX and how is VIX calculated? How do you interpret shifts in the VIX number and what is the ideal VIX for any market? Are there are any investment decisions that you can make purely based on the VIX? Suffice to say that VIX is not only important for traders as a fear index but it is also useful for investors to take important decisions on asset allocation.