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Cboe Launches 1-Day Volatility Measure

Cboe Labs, Cboe Global Markets’ innovation hub, has introduced the VIX1D Index. This new volatility measure allows traders to estimate the current day’s volatility, providing real-time insights into market dynamics. This new index complements Cboe’s existing suite of volatility indices, including the VIX Index. It offers a perspective on single trading day volatility, filling a crucial gap in the market’s understanding of real-time market dynamics. The VIX1D Index, designed to measure the expected volatility of the S&P 500 Index over the current trading day, employs a similar methodology to its well-established counterpart the VIX Index. However, the VIX1D Index focuses on the compressed measurement of volatility over a single day, accounting for the short-term impact of news events on the market. As a result, the VIX1D Index tends to exhibit greater volatility than indices measuring longer time horizons. It gives traders valuable insights into daily market dynamics, reflecting short-term impacts and complementing the VIX Index’s 30-day outlook.

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