Indices. Diverse financial instruments that free you from the hard job of settling on a basket of individual stocks.
What are the world’s top 5 indices? Yes, you guessed it: the Dow Jones, S&P 500, Nasdaq 100, DAX 30, FTSE 100. But there are more indices that may (and should) attract your attention. Just think about the US Dollar Index (DXI) and the Volatility index (VIX).
US Dollar index (DXI)
US dollar remains the most popular global currency. The dollar still rules the foreign exchange market, as 90% of forex trading involves the USD.
The chart below substantiates the US dollar’s leading position among the list of top 10 traded currencies in 2018:
Besides its leading role in the world’s forex market, the US dollar also forms the basis of the US Dollar Index (DXI).
The US Dollar index (DXI) operates as a benchmark, measuring the USD value in relation to a basket of major foreign currencies. The index is calculated as a weighted geometric mean of the dollar’s value (USD) against 6 currencies of US trade partners, including the Euro (EUR), the Japanese yen (JPY), pound sterling (GBP), Canadian dollar (CAD), Swedish krona (SEK) and Swiss franc (CHF).
When the American dollar rate strengthens its position, the DXI value increases. The index is managed and calculated by the ICE futures commodity exchange.
US Dollar index (DXI) price history
The DXI index started in 1973 at a base level of 100. Since then it has been widely used for hedging risk in forex markets or to trade the US dollar without the risk exposure to a single currency pair.
Historically, the US dollar index reached an all-time high of 164.72 in February 1985. The DXI’s record low of 71.32 happened in April 2008.
On Friday, 12 April 2019, the DXI decreased 0.2193 points (or 0.23%) to 96.957 from 97.177 in the previous trading session. To follow the most recent ups and downs of the US Dollar index, check out our live US dollar (DXI) price chart.
Volatility and VIX
The Volatility (VIX) index is considered to be the world’s key barometer of the equity market’s volatility. Based on real-time prices of the S&P 500 index options, VIX is designed to reflect the investors’ view on the future stock market volatility for the following 30 days.
Globally, the Volatility index is recognised as one of the most accurate measures of volatility – reported by the international media and followed as a daily market indicator.
VIX serves as one of the so-called contrarian indicators. It helps to determine, whether the markets have reached an extreme position. When it happens, it tends to be a clear sign that the markets are about to enter a reversal.
Often referred to as the market’s “fear gauge”, Volatility index offers investors an effective way to manage risk, diversify their portfolio and leverage volatility.
Volatility Index (VIX) price history
Founded in 1986, the VIX stock market index is managed and calculated by CBOE – the Chicago Board Options Exchange.
Historically, the United States Volatility index reached an all-time high of 80.86 November of 2008. The VIX’s record low of 9.14 happened November of 2017.
The latest Volatility index price, as of 12 April 2019, is 14.79. You can always catch up with the latest VIX price swings with our live Volatility index price chart.
If you still haven’t thought of volatility as a tradable asset and the USD as more than just the world’s leading currency – now you should. Financial markets open endless opportunities; just find out where to search for.