John Murray
Good way to put it: the VIX measures how much movement traders expect, not which direction. A calm VIX isn't a safety signal either, so it's worth keeping your risk limits (like a daily spend cap) set no matter what it reads.
What is the VIX, in plain words?
Discussion
It's a number built from S&P 500 options prices that shows how big a swing traders expect over the next month. When people get nervous, they buy protection and the VIX rises. On Friday it jumped 21.5% to about 20, its highest in about three months.
A rising VIX doesn't tell you which way the market will go, only that traders expect bigger moves. Got a question about it? Ask below, since there are no silly questions here.
The numbers come from CNBC, Reuters, CME FedWatch, CoinDesk, SpotGamma and CoinGlass reports from Oct 18–19.