What is a fear index? Indicators that市場のntify market anxiety with VIX

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Fear index is an indicator that投資家ntifies the anxiety and alertness of investors.

In general, refers to the VIX index of the U.S. stock market. VIX shows how much market will move in the future based on the option price of S&P500.

The higher the VIX, the higher the market, the higher the volatility, the stronger the investor’s alertness.

However, it is dangerous to judge the purchase and sale by VIX alone. In this article, we will organize the meaning of the fear index, why VIX rises, how to look at numbers, and how to use it for beginners.

What is a fear index?

The fear index is generally a VIX index.

VIX stands for Volatility Index. It is calculated based on the option price of S&P500, a typical stock index in the United States.

It is an indicator to see how investors are wary of future market ctuations.

It is used to check the market value and forecast ctuation rate, not the stock price itself.

Why is it called a fear index?

In the stock market, the demand for hedge increases when anxiety increases.

For example, if an investor warns of a stock price rush, the movement to buy an option to prepare for the fall will increase. As a result, the option price rises and the VIX becomes easier.

The image is as follows:

Increase market anxiety
↓
Increased hedge demand
↓
More Options
↓
VIX rises

In this way, VIX is called a fear index because it is easy to avoid market anxiety.

How is VIX calculated?

VIX is calculated based on the option price of S&P500.

The more the investor considers future value movements, the more options the price will rise. As a result, the expected ctuation rate rises and the VIX also rises.

VIX is an indicator that defines market perspectives on future市場のctuations, not past game movements.

Therefore, VIX may be described as "expected future anxiety".

About VIX

The VIX standard varies depending on the market environment, but for beginners it is easy to understand.

However, this table is an estimate. The market environment, interest rate, economics, financial policy, geopoli risk, etc. will change the meaning even at the same VIX level.

Why Investors Focus

The reason why VIX is attracting attention is that you can check the market value with numbers.

If you look at the stock price, it may be difficult to understand why it is lowered and how many investors are cautious. VIX makes it easy to understand which market is interwoven.

In particular, the VIX becomes more prone to rise. VIX has increased greatly even when it is a big confusion such as Lehman shock and shock.

On the other hand, some investors see that market is too optimistic when VIX is very low. In other words, VIX is not only anxious, but also a material that checks the movement too much.

How to use for beginners

The beginner is enough to see the rise of VIX first and a rapid drop.

When VIX is booming, the movement of the market increases and the investor's requirements may be unstable. It is important to check your asset allocation and risk tolerance rather than to buy and sell in such a local context.

When you look at VIX, consider the following:

• Is VIX not rushing?
• Is it rising as the stock price fall?
• Are interest rates and exchanges not rough?
• Is your investment policy broken?

VIX is not a trading signal, it is practical to use it as a market thermometer.

Common misunderstandings

It doesn’t mean that VIX will 。.

The short-term alertness is increased and the stock price may be settled immediately. If you look at VIX only, you will be able to move to the market.

It is not safe because VIX is low. In some situations where the market is too optimistic, there may beリスクumulation of risk that is difficult to see.

VIX is an important indicator, but it is necessary to see it in conjunction with stock price, interest rate, exchange rate, corporate performance, and financial policy.

Long-term investment with VIX

What is important for long-term investors is that it is not too much to sprinkle with VIX.

Short-term horror market happens over and over. However, in long-term investments, dispersion,立umulation, co。ity, and rebalance are often more important.

When VIX rushes, it is an easy-to-understand topic that emotionally bought and sold. Let’s check the purpose of investment, period of investment and asset allocation.

• Fear index refers to VIX index in general
• VIX is calculated based on the option price of S&P500
• Indicators to see the uncertainty and forecast ctuation rate of investors
• VIX is easy to rise on the express plane
• It is important that long-term investment is not too much to be spun

It is easy to use by beginners to understand VIX as a thermometer that市場ntifies market requirements.