The VIX is derived from prices of S&P 500 options. Rising VIX signals that investors are paying up for downside protection — usually because uncertainty is high.
A VIX under 15 suggests calm markets; 20–30 is normal turbulence; 40+ is crisis territory. It doesn't predict direction, only the size of expected moves.
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Open Decision Lab →Frequently asked questions
Can I invest directly in the VIX?
Not the index itself. There are VIX futures and ETFs that track those futures — most are poor long-term holdings due to structural decay.