The VIX (also known as the Volatility 75 index) maps implied volatility based on the options market. In general, a high VIX value means increased investor anxiety, while a low figure indicates general complacency.
The Volatility 75 index is an important index in the world of trading and investing as it provides a quantifiable measure of market risk and investor sentiment. The put-call ratio (PCR), which represents the volume or open value of put options compared to call options, is easy to combine with the VIX.
What correlates with the Volatility 75 Index?
Strategy benchmark indices are not financial products in which you can invest directly, but which can be used as a basis for financial products or portfolio management. Prudent traders use a variable system for the optimal position size in the market, which depends on existing volatility. This experience formed the basis for ABR’s strategy, which focused on the overall volatility of US stocks at market level. ABR is generally equivalent to net short volatility without outside financing, and short-term volatility risk is kept within a controlled range.
VIX index products are complicated financial products that are only suitable for demanding market participants.
If you want to trade the VIX, you can check out our list of the best Volatility 75 index brokers.
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