VIX Live Chart & Price
The VIX Live Price & Charts at CAPEX.com features an interactive chart for the price of CBOE Volatility Index (VIX) Futures as well as VIXX trading conditions. VIX chart can be displayed using a candlestick or linear chart. You can also look at numerous timeframes from 5 minutes to 1 week to analyze the VIX price today.
Why Use VIX Live Chart & Price?
VIX is the ticker symbol and the popular name for the Chicago Board Options Exchange's CBOE Volatility Index, a popular measure of the stock market's expectation of volatility based on S&P 500 index options.
Vix price chart can be useful in several ways. For those looking to gauge market sentiment, VIX charts are an absolute necessity.
The VIX tells us the market’s expectation of volatility, and for this reason, it is considered a leading indicator for the wider stock market.
You can use the VIX as part of a trading strategy as it can give indications of whether the S&P 500, and the stock market in general, are going to reverse from its current trend.
How to use the VIX chart to predict market volatility
The VIX measures the implied volatility of the S&P 500 (US 500), based on the price of SPX options. It is calculated and published by the Chicago Board Options Exchange (CBOE). As the S&P 500 is widely regarded as a barometer for US stock market health, the VIX is thought to measure implied volatility across US stock indices.
When the VIX is low, it means there is less market fear, more stability, and long-term growth. The VIX typically has a negative correlation with the S&P 500, so when the VIX is low, the S&P 500 is usually experiencing a rise in price.
When the VIX is up, it means that there are significant and rapid price fluctuations in the S&P 500. The VIX typically has a negative correlation with the S&P 500, so in periods of market stress, the VIX increases.
When the VIX live chart price is at very low levels, there is a nuance to this that can help identify when the stock market may be nearing a turning point to the downside, but they don’t happen frequently. When the VIX and S&P 500 both rise together over a period of time it can indicate growing instability in the trend which sets the market up for a sell-off.
How to Speculate on VIX Price?
Like all indexes, one cannot buy the VIX directly. Instead, investors can take a position in VIX through futures contracts and through exchange-traded funds (ETFs) that own those futures contracts.
Futures contracts are leveraged. That is, they enable you to receive increased market exposure for a small deposit – known as margin – and your trading provider loans you the rest of the full value of the trade.
When you open a position on the VIX, there are two basic positions that you can take: long or short. It is important to remember that volatility traders are not interested in whether the price of the S&P 500 is going to rise or fall, as they can capitalize on both – they are instead looking at whether the market is volatile.
What moves the VIX price chart today?
The VIX attempts to measure the magnitude of price movements of the S&P 500 (i.e., its volatility). The more dramatic the price swings are in the index, the higher the level of volatility, and vice versa.
VIX values are calculated using the Cboe-traded standard SPX options, which expire on the third Friday of each month, and the weekly SPX options, which expire on all other Fridays.
When investors are expecting more stability the VIX price falls. When investors are nervous which indicates volatility in the market ahead, the VIX price rises.
How high can the VIX prices go in 2022?
A volatility index level of 20 and above is seen as abnormally high, while 12 or below indicates the market is in a period of low volatility.
According to VIX historical prices, the VIX value hit a 10-year high at 53.57 on 16 March 2020, when the global economy sank from the onslaught of an unprecedented Covid-19 pandemic.
As a result of the Russia-Ukraine conflict and related market volatility, many analysts have withheld their VIX index forecast.
Peace talks between Russia and Ukraine are underway. If an agreement is reached to cease hostilities, risk sentiment and market projection could improve.
Additionally, an increase in interest rates to counter the impact of rising inflation could also limit market volatility.
Browse our live VIX chart to get all the information you need on VIX “fear index “
During its origin in 1993, VIX was calculated as a weighted measure of the implied volatility of eight S&P 100 at-the-money put and call options, when the derivatives market had limited activity and was in its growing stages. As the derivatives markets matured, 10 years later, in 2003, the CBOE teamed up with Goldman Sachs and updated the methodology to calculate VIX differently. It then started using a wider set of options based on the broader S&P 500 index, an expansion that allows for a more accurate view of investors’ expectations on future market volatility. A methodology was adopted that remains in effect and is also used for calculating various other variants of the volatility index.
The key thing to remember is just that the VIX index and the S&P 500 have an inverse relationship, so when the VIX is rising or falling, the S&P will likely be doing the opposite.
With CAPEX WebTrader’s comprehensive live VIX chart you can stay up to date with the latest changes in the market sentiment from your mobile and browser.