India VIX and its Significance
India VIX is a volatility index which measures market expectations of near term volatility.
It indicates the investor's perceptions of the market volatility in near term. Higher the India VIX values, higher the expected volatility and vice-versa.
Volatility index is also referred to as the Fear Gauge and is used by traders/investors to make their trading/investment decision.
As the volatility index rises, one should become careful as the market can steeply move into either direction.
The contract symbol is INDIAVIX and 3 weekly futures contracts are available for trading.
The contract specification can be downloaded from www.nseindia.com.