what is the vix 
the vix is the cboe volatility index a measure of the short term volatility in the broader market measured by the implied volatility of 30 day s p 500 options contracts the vix generally rises when stocks fall and declines when stocks rise also known as the fear index the vix can be a gauge of market sentiment with higher values indicating greater volatility and greater fear among investors 8the bottom linevolatility is how much and how quickly prices move over a given span of time in the stock market increased volatility is often a sign of fear and uncertainty among investors this is why the vix volatility index is sometimes called the fear index at the same time volatility can create opportunities for day traders to enter and exit positions volatility is also a key component in options pricing and trading 