31) Volatility Index Flashcards
1
Q
What is this index ?
A
It is an index used to measure the near term volatility expectations of the markets
2
Q
What does it signify ?
A
Rate and magnitude of change in stock price or index value
3
Q
What is the other name of this index ?
A
Fear guage or Fear index
4
Q
Who created it ?
A
Chicago board Options Exchange (CBOE) in 1993
5
Q
Who launched India’s volatility index ?
A
National Stock Exchange in 2010
6
Q
How is it related to Nifty ?
A
Negative correlation (Inversely proportional) -- India's VIX falls --> NIFTY rises
