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Investment Enthusiast , Perpetual Learner, Thriving in the middle of Knowledge and Wisdom. Mutual Funds | PMS | Alternates

What is VIX ?? 📊 📉 📈 VIX is the measurement of nervousness. It is applicable to the stock market but to make it simply simple let's look at a cricket analogy. Low VIX score when applied to cricket is like a cricket match where the result seems certain. The batting team needs few runs with many wickets left. Fans and players are relaxed. When applied to stock markets it gets translated as Investors are calm, and prices are stable. High VIX in the cricket example is like a nail-biting, uncertain match. The batting team needs a few runs with one wicket left. Fans are nervous, and players feel pressured. When applied to the Stock Market, it is like the Investors in a state of anxiety expecting big price changes. To Summarise : Low VIX: Calm game, predictable outcome. In the stock market, this means stability and confidence. High VIX: Tense game, uncertain outcome. In the stock market, this means high uncertainty and volatility.

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Vishal Waghate

Investment Enthusiast , Perpetual Learner, Thriving in the middle of Knowledge and Wisdom. Mutual Funds | PMS | Alternates

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