# VIX

*Markets & Instruments — Finicade finance glossary*

The market's 'fear gauge' — an index of the volatility investors expect in US stocks over the next month, read out of option prices. It spikes when markets panic and drifts low when they're calm.

**Also known as:** fear index

**Related terms:** [Implied Volatility](https://finicade.com/glossary/implied-volatility), [Volatility](https://finicade.com/glossary/volatility), [Option](https://finicade.com/glossary/option)

**Taught in:** Quant Quest — Variance Swaps & Volatility Index

Source: https://finicade.com/glossary/vix