What are the common and difference between India Vix, volatility and implied volatility
you must read the very well explained in practically for layman by Zerodha Varcity
after reading you will be amazed to see the concepts and their implications.
1 Like
Volatility is just a standard deviation or variability of historical prices. This is also known as historical volatility and few believe it is a good indication of future volatility of prices.
Implied volatility as the name suggests is the volatility currently the market has discounted in to the prices. This is not directly observable in the market.
India Vix is a volatility index based on prices of nifty options, it shows markets expectation of 30 days volatility.
The Vix index is forward looking and is used to predict the future market movements where as historical volatility measures variability of historical or already known prices.
For more explanation go through this and also go through the comment section.
how to get the VIX, and implied volatility of indices on a 15 minute chart ?
On kite, add vix index and open chart and select 15min timeframe.
how to get IV of call and put (especially near ATM) options on volatility cone of an index