The VIX Index measures market sentiment, showing how "fearful" traders are expected to be over the next 30 days. Often referred to as the "Fear Index," it rises during uncertain market conditions.
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When does it spike?
VIX tends to increase significantly during times of market instability, such as financial crises. Notably, it soared to 150 during the 1987 stock market crash and the 2008 recession.