> What's the defination of ^VIX?

What's the defination of ^VIX?

Posted at: 2014-12-05 
It measures the month-forward implied volatility on S&P 500 index options. If the market thinks the S&P 500 will have annualized volatility of 25% over the next 30 days, the market will price options accordingly. And we can extract that using the Black-Scholes formula.

it's measures the volatility of the market, the higher the VIX the higher the volatility

Google up Invetopedia and read away. The idea of any d-e-f-i-n-i-t-i-o-n is explanation of a word or term you don't understand in words and terms you do understand. The definition of VIX will have words and terms you don;t understand, so you will need to look them up too.