VIX and VDAX

The VIX is the volatility index for the S&P 500 stock index, and the VDAX is the volatility index for the DAX stock index. These volatility indicies are primarily used by options traders to price options (i.e. determine their options' premiums), and by stock index traders to determine the expected range of their markets. However, as these volatility indicies are used as volatility indicators for world markets in general, they can be useful to other traders as well (e.g. individual stock or even forex traders).

Further information about the VIX and VDAX volatility indicies is available in the VIX and VDAX glossary entries.