Australian stock market volatility is at its highest level since Trump was elected

Photo: Matt Cardy/ Getty Images.

The Australian share market continues to crater in afternoon trade.

With the market now down well over 1%, the ASX200 Volatility Index (VIX) has unsurprisingly shot higher.

Today’s result means that the ASX200 VIX is now at its highest level since the US elections last November.

The S&P/ASX 200 VIX is primarily used as an indicator of investor sentiment and market expectations, and is calculated using prices for put and call options traded on the ASX.

A volatility index at relatively high levels generally implies a market expectation of very large changes in the S&P/ASX 200 over the next 30 days, while a relatively low volatility index value generally implies a market expectation of very little change.

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