Understanding The Vix Term Structure: Implications For Market Volatility And Investment Decisions
The VIX term structure refers to the spectrum of implied volatility levels across different maturities of VIX futures, providing insight into market expectations of future volatility. It helps investors gauge market sentiment about the expected level and duration of volatility fluctuations, enabling informed decisions in managing risk, implementing trading strategies, and hedging portfolios. VIX Futures:…