How does VIX index influences forex and USA stock market

lucacrebbe

Trader
Jun 26, 2017
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I have red that VIX index is the volatility index. My question would be: How does it influence the forex and the stoks market?

In those days interest rates have been rised, but the market has reacted not so bad in the end, well how did perform the VIX about this situations?

Also I have red about people who have invested in VIX index... I donìt know if it is a indicator for volatility or it is simply a index fund

Sorry for the noob question
 

jellyeb

Active Trader
Jun 10, 2015
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Basically through VIX futures or straddle option strategy which make volatility subdued. But it also increase risks of sharper plunge during turmoil
 

Enivid

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Nov 30, 2008
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VIX is a measure of the expected stock market volatility based on S&P500 options values.

Some traders also use it to measure the expected volatility (or "riskiness") of the Forex market, assuming that low VIX means risk-on mode (risky currencies appreciate), while high VIX means risk-off mode (safe currencies appreciate).

You can trade VIX via VIX futures.
 

lucacrebbe

Trader
Jun 26, 2017
86
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22
40
VIX is a measure of the expected stock market volatility based on S&P500 options values.

Some traders also use it to measure the expected volatility (or "riskiness") of the Forex market, assuming that low VIX means risk-on mode (risky currencies appreciate), while high VIX means risk-off mode (safe currencies appreciate).

You can trade VIX via VIX futures.
Sorry Why VIX low shoud be a risk indicator? The volatility of the stock market is a trheat for currencies? Can I ask you why?
 

lucacrebbe

Trader
Jun 26, 2017
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Basically through VIX futures or straddle option strategy which make volatility subdued. But it also increase risks of sharper plunge during turmoil
Traders that trade VIX futures influence the volatility? Why does it it also increase risks of sharper plunge during turmoil?

The volatility of the stock market is usually a sign of some bigger problem, which makes investors shun "risky" currencies and flock to "safe" currencies.
so they would buy safer currencies, such as dollar, or Euro for example?
 

Enivid

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Gold does not seem to be a popular choice for refuge during risk-aversion since the financial crisis. Industrial metals (such as copper) are even more sensitive to risk and will drop when investors see any danger to the global growth.
 

lucacrebbe

Trader
Jun 26, 2017
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Gold does not seem to be a popular choice for refuge during risk-aversion since the financial crisis. Industrial metals (such as copper) are even more sensitive to risk and will drop when investors see any danger to the global growth.
thank you for answer, I always red about gold as refuugee thing periods of crash market

What's been the Gold performance in the history during the market crashes?