What does the VIX measure?
VIX is Cboe's measure of near-term expected S&P 500 volatility implied by SPX option prices. It is a forward-looking volatility benchmark, not a direct forecast of equity direction.
A constant 30-day volatility measure
Cboe uses eligible SPX option quotes with nearby expirations and weights them to represent a constant 30-day horizon.
The percentage-like index level is annualized expected volatility. It is not the expected percentage move for one day.
Spot VIX is not a tradable asset
Investors cannot hold the index directly. VIX futures and options have their own prices, expiries, term structure, and settlement behavior.
A high VIX often accompanies equity stress, but the relationship is not a mechanical buy or sell rule.
Frequently asked questions
Does VIX show market direction?⌄
No. It measures the option market's expected volatility magnitude.
Can I buy spot VIX?⌄
No. Tradable products are derivatives whose returns can differ from movements in the spot index.
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