The Volatility Index (VIX) measures expected stock market volatility over the next 30 days. It's often called the 'fear index' because it gauges market fear and uncertainty.
High VIX (above 30) means investors expect significant market swings — typically during market crashes or uncertainty. Low VIX (below 15) suggests investors expect relative stability.
The VIX cannot be traded directly, but futures and options based on it allow investors to speculate on or hedge against market volatility.
Bangladesh's stock exchanges (DSE/CSE) don't yet have their own volatility index, though market participants do track volatility informally.