Implied Volatility (IV) is a forward-looking measure derived from the market price of an options contract, reflecting the market's expectation of how much an underlying asset's price will fluctuate over a given period. Unlike historical volatility, which looks backward, IV is extracted from current option premiums using models like Black-Scholes. A rising IV typically indicates increased market uncertainty and fear, while low IV suggests complacency. In India, the NSE's India VIX (India Volatility Index) is the benchmark gauge of market-implied volatility.
For android only
