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Article: Teaching the old Vix new tricks.(volatility index for securities risk)(Statistical Data Included)
- Article from:
- Futures (Cedar Falls, IA)
- Article date:
- August 1, 2001
- Author:
CopyrightCOPYRIGHT 2001 Summit Business Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Volatility is the essence of trading, creating the reward and risk that makes markets. Any better measure of volatility, then, can give you an edge over those you're trading against. Here's one such measure that improves on an industry standard, the Vix.
Volatility is an over-used and often misunderstood term. Too many traders equate it with something bad for markets. This negative connotation may lead investors and traders to think increased volatility is either bearish or dangerous. Nothing could be further from the truth. Jumps in market volatility can occur in uptrending, downtrending and sideways markets. Nor is volatility inherently dangerous if you ...