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The VIX was created by the Chicago Board Options Exchange (CBOE) in 1993 and represents an expectation of volatility in the market.
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The VIX measures the market’s expected price movements over the next 30 days. It is determined by the implied volatility of S&P 500 index options. A high VIX of over 30 or 40, for example, signifies fear and uncertainty in the market.