nifty VIX

#1
VIX is the volatility index but
1.wat is that
2. how is it quantified
3. wat is its significance
4. is it a measure of market sentiment at the time or is it a leading or lagging mommentum indicator
pls just add anything you know
 
#2
VIX is the volatility index but
1.wat is that
Volatility Index is a measure of markets expectation of volatility over the near term. Volatility is often described as the rate and magnitude of changes in prices and in finance often referred to as risk. Volatility Index is a measure, of the amount by which an underlying Index is expected to fluctuate, in the near term, (calculated as annualised volatility, denoted in percentage e.g. 20%) based on the order book of the underlying index options.

India VIX is a volatility index based on the NIFTY Index Option prices. From the best bid-ask prices of NIFTY Options contracts, a volatility figure (%) is calculated which indicates the expected market volatility over the next 30 calendar days. India VIX uses the computation methodology of CBOE, with suitable amendments to adapt to the NIFTY options order book using cubic splines, etc.



2. how is it quantified
http://nseindia.com/content/vix/India_VIX_comp_meth.pdf

3. wat is its significance

4. is it a measure of market sentiment at the time or is it a leading or lagging mommentum indicator
http://www.investopedia.com/articles/optioninvestor/03/091003.asp

http://www.investopedia.com/articles/optioninvestor/09/implied-volatility-contrary-indicator.asp

Also search investopedia.com to get more information on VIX :D

have a nice day
JBest
 

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