I'm wondering if the VIX, which is often seen as a measure of
market volatility, could possibly drop to zero. Is such a scenario even feasible?
6 answers
Valentino
Tue Dec 03 2024
VIX futures and options are financial instruments that should not be treated as long-term, buy-and-hold investments.
Silvia
Tue Dec 03 2024
Volatility has its limits and cannot continue to rise indefinitely.
MysterylitRapture
Tue Dec 03 2024
It is also impossible for volatility to reach zero, as it is an inherent characteristic of financial markets.
SilenceSolitude
Tue Dec 03 2024
Historically, volatility has never fallen below a certain level, specifically nine, which sets it apart from equity prices.
amelia_jackson_environmentalist
Tue Dec 03 2024
The behavior of volatility is distinct and differs significantly from the trends observed in equity markets.