List of Financial Market Terms

The VXD measures the implied volatility of the Dow Jones Industrial Average.  Basically, the VXD is a measure of the fear and uncertainty associated with the DJIA. If the VXD reading is low (0-20), it indicates that individuals are comfortable and fear levels are low.  A high VXD reading (above 20) indicates fear and uncertainty in the market place, which results in a more volatile market environment.

VXD is commonly used in stock trading, day trading, options trading, and futures treading,

Here' s a look at the 2 year chart of the VXD for your visual entertainment.  As you can see, it's been a wild ride.

VXD dow jones industrial average volatility index

Related terms: CBOE, VXN, VIX

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