scorecardresearchWhat is volatility index and what does a spurt in the index mean for investors? We explain

What is volatility index and what does a spurt in the index mean for investors? We explain

Updated: 28 Dec 2021, 08:54 AM IST
TL;DR.
A sudden crash or jump in the market index makes the market look volatile and unpredictable. But how can one measure its pace of unpredictability in future? There is an index — Volatility index — that does exactly this. Let us decode what it means
Volatility is seen as a measure to assess market sentiment, and in particular, the degree of fear among market participants.

Volatility is seen as a measure to assess market sentiment, and in particular, the degree of fear among market participants.