National Stock Exchange launches Volatility Index futures

To help investors hedge near-term volatility risks in their equity portfolio, the National Stock

RELATED ARTICLES

Exchange today launched its futures contracts on India VIX (volatility index) called 'NVIX'.

India VIX is a volatility index based on the index options prices of Nifty.

"Volatility is a different risk class. It has a tremendous potential as every one has to deal with volatility. Anyone who has a portfolio, one who needs to hedge the portfolio for volatility...It could be for institutional or high networth individuals (HNI). It is a broad base usage of this product," NSE MD & CEO Chitra Ramkrishna said after the launch.

Uncertainty is for everyone. This product will help in hedging uncertainty. We expect very good broad-based participation in this product, Ramkrishna added.

NSE is aiming to tap into domestic institutional investor demand for equity futures and options.

The NSE, which constructed India VIX, started disseminating India VIX index in 2009.

India VIX indicates the investor's perception of the market's volatility in the near term. The index depicts expected market volatility over the next 30 calendar days.

A high India VIX value would suggest that the market expects significant increase in volatility, while a low value indicates the reverse. India VIX and Nifty have a negative correlation.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Those willfully defaulting on loans should be blacklisted by Sebi

    As reported by this newspaper’s Monday edition, the Securities and Exchange Board of India (Sebi) has found merit in the Reserve Bank of India’s s

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Kumar Jain

Kickstarting technological innovation

One of the key dimensions of global competitiveness is the ...

Kuruvilla Pandikattu SJ

Developing moral, spiritual capacity

Writing in The Huffington Post, Noam Chomsky, professor emeritus, MIT ...

Gautam Gupta

Manufacturing must keep workers’ welfare in mind

It may be early days yet, but the labour reforms ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture