Understanding Volatility Index Wilder for Forex Traders
Understanding the Volatility Index (VIX) is a great starting point for successful Forex trading. The VIX, also known as the “wilder index”, measures the volatility of the market and indicates the level of fear and uncertainty in the market. It is based off average option prices for a specific underlying financial instrument such as a stock index. When the fear level is high, the VIX will rise and when the fear level is low, the VIX will fall. Traders can use the VIX as an indicator of market sentiment and to help them make better trading decisions. Knowing how to read and interpret the VIX can help traders stay ahead of the curve and make more profitable trades.