How the Stock Market ‘Fear Index' Works

  • 📰 nbcchicago
  • ⏱ Reading Time:
  • 29 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 15%
  • Publisher: 51%

United Kingdom News News

United Kingdom United Kingdom Latest News,United Kingdom United Kingdom Headlines

The VIX can spike when investor concerns are heightened by events like the raising of interest rates by the Federal Reserve or the Covid-19 pandemic.

The volatility index, also known as the VIX, essentially takes a reading of the stock market's blood pressure, measuring investors' fear.

"It's just a unique tool that we can actually quantify that [concern]," Lindsey Bell, chief markets and money strategist at Ally Financial, told CNBC."It's measuring implied volatility over the next 30 days, and that's derived from option activity," said Jason Snipe, founder and chief investment officer at Odyssey Capital Advisors."That's the catalyst for what moves [the VIX] in either direction.

Investors can use the VIX to help them make buying and selling decisions, or they can indirectly invest in it.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 545. in UK
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

HA HA You lost me a the part about people buying and selling stock is what effects the price 😂🤣😂🤣

HassanFirouzi is in prison. He is asking to see his daughter before his death. He says: We had this child after 10 years and I have seen her only for 18 days. he has been tortured, the government waits for him to get better and then they'll EXECUTE him. Be his voice. MahsaAmini

acorns Down only and still no vix spike… demp yeeet

acorns So it's like an algorithmically stabilized market...

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

5 Things to Know Before the Stock Market Opens MondayRussian and Ukrainian officials hold another round of peace talks, while a Covid outbreak in China is prompting new restrictions on businesses and schools.
Source: NBCDFW - 🏆 288. / 63 Read more »

Asian Stock Market: Chinese markets bleed on renewed Covid-19 fears, oil plunge support the restAsian Stock Market: Chinese markets bleed on renewed Covid-19 fears, oil plunge support the rest By Sagar_Dua24 Asia Nikkei Fed RiskAversion Ukraine
Source: FXStreetNews - 🏆 14. / 72 Read more »