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What are some real world examples of how the VIX is used?

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  • Apr 4th, 2020 7:03 am
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Sep 21, 2007
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Winnipeg

What are some real world examples of how the VIX is used?

So these three letters are being used a lot in these forums and I want to learn more about it.

It's a real-time market index that represents the market's expectation of 30-day forward-looking volatility. Derived from the price inputs of the S&P 500 index options, it provides a measure of market risk and investors' sentiments. - Yes I know textbook answer.

But I want some real life examples on what how it's used. I'm sure this would help a bunch of newbie traders in here too.

Thank you so much in advance if you contribute!
Last edited by faken on Apr 3rd, 2020 8:43 pm, edited 1 time in total.
Reason: Title edit
"An essential aspect of creativity is not being afraid to fail." -- Edward Land
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Oct 27, 2006
411 posts
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Newbie traders shouldn't be trading the VIX

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