India VIX is a volatility index which tries to capture the market’s expectation of volatility in the near term.

From NSE’s website, India VIX is a volatility index based on the Nifty 50 Index Option prices. From the best bid-ask prices of Nifty 50 Options contracts, a volatility figure (%) is calculated which indicates the expected market volatility over the next 30 calendar days.

The higher the volatility index, the more is the price of the underlyinig security expected to vary, and then higher the risk. Or to an investor who has taken a fundamentally strong position, more are the chances of higher returns in the near future.

Should investors and traders also look at India VIX before executing a trade? Please share your views using comments.

Here is the link to NSE’s website on the subject
India VIX

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