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Volatility index (VIX)

The volatility index is a popular indicator of market sentiment. For traders, the volatility index represents not just a helpful tool for measuring risk but also an opportunity to profit from volatility itself. By taking a position on the volatility index, the trader will likely balance out other stock positions held in their portfolio and hedge their market exposure.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

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