However, you can trade the sentiment it represents. Here is the reality of "investing" in the market's fear. 1. You Aren't Buying a Stock, You’re Buying Expectations
Since the index itself isn't tradable, Wall Street created "proxies." buying vix stock
What is the VIX Volatility Index and How Do You Trade it? - IG However, you can trade the sentiment it represents
The "Fear Index" Unlocked: What "Buying VIX" Actually Means If you’ve ever seen a "Buy VIX" headline during a market crash, you might have rushed to your brokerage app only to find... nothing. You can’t actually "buy" VIX stock. The Cboe Volatility Index (VIX) is a mathematical calculation, not a company. You Aren't Buying a Stock, You’re Buying Expectations
What is the Volatility Index (VIX)? The VIX is a real-time volatility index, created by the Chicago Board Options Exchange (CBOE). www.ig.com
When the S&P 500 plunges, the VIX typically spikes as investors panic-buy insurance (options).
The VIX measures the "implied volatility" of S&P 500 options over the next 30 days.