--- title: "How is India VIX calculated | RupeeCase" description: "India VIX is built from the prices of out of the money Nifty options in the near and next month expiries, blended to a thirty calendar day horizon." source_url: "https://www.rupeecase.com/learn/questions/how-india-vix-is-calculated" --- India VIX is built in five steps, from option prices to a thirty day annual volatility The method as NSE describes it, drawn as a flow. The steps are the same on every date, and the dated replication is on the tool page. Source: NSE, India VIX methodology; replication on the 10 Jun 2026 Nifty chains. As of 10 Jun 2026. India VIX is not the output of a model that someone fitted to the index. NSE takes the out of the money Nifty calls and puts from the near and the next month expiry and combines them into one figure for a thirty calendar day horizon. Each strike counts for its price times the gap to its neighbouring strikes, divided by the square of the strike, and the strips of the two expiries are blended by how far thirty days lies from each. The steps run in order, and the chart lists them. First the forward is found, from the Nifty futures. Then the strip is added up for each expiry and turned into a variance. The two expiries are blended to thirty days, and the square root gives an annual volatility. Two details matter for a reader. The first is missing quotes: where a strike has no quote, NSE fills the gap with a cubic spline. The second is the rate: a money market rate discounts the prices, and on a single day the rate moves the result only a little. NSE computes the published figure from bid and ask quotes through the session. A replication built from end of day settlement prices will differ slightly, and the VIX replication tool shows that gap on dated sessions. The gap is expected. Read the figure as a rough size of the move, not a forecast. Dividing the annual figure by the square root of twelve gives the one standard deviation move for a month. The index can close outside that band, and fat tails make the outside moves larger than the band suggests. **Before you trade.** Derivatives trading carries a high risk of loss. SEBI's study "Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26)" (August 2026) found that 87.7% of individual traders in equity F&O made net losses in FY26, with aggregate net losses of Rs 91,685 crore. [Read the SEBI study](https://www.sebi.gov.in/reports-and-statistics/research/aug-2026/study-profitability-of-individual-traders-in-the-equity-derivatives-segment-fy25-fy26-_103835.html) How is India VIX calculated?India VIX is built from the prices of out of the money Nifty options in the near and next month expiries, blended to a thirty calendar day horizon, using the forward level and a money market rate, so it is a variance measure read from option prices. It is quoted as an annual percentage, so it gives the size of the move the options price in, and it does not say which way the index will move. LGo deeper ## Where Learn teaches this. [Go deeperIndia VIX for beginners: what it measures and what it does not8 min, Beginner](/learn/path-16/module-16-2-india-vix-explained)[Go deeperSolving for implied volatility9 min, Intermediate](/learn/path-16/module-16-3-solving-for-implied-volatility)[Try itVIX replicationThe seven steps from a dated chain to a 30 day volatility number, checked against India VIX that day.](/learn/tools/vix-replication) SSources ## Go to the source. 3 sources, NSE the most cited The publisher of each source listed below. Source: Module undefined source list. 1. [NSE, India VIX: what it measures and how it is computed](https://www.nseindia.com/static/products-services/indices-indiavix-index) NSE 2. [NSE, India VIX white paper (methodology)](https://nsearchives.nseindia.com/web/sites/default/files/inline-files/white_paper_IndiaVIX.pdf) NSE 3. [NISM, Series VIII equity derivatives certification test objectives](https://www.nism.ac.in/revamp-nism/test-objectives-revised-nism-series-viii-equity-derivatives-certification-examination/) NISM ?Questions people ask ## Related questions. [QuestionWhat is India VIX?Beginner](/learn/questions/what-is-india-vix)[QuestionWhat is implied volatility?Beginner](/learn/questions/what-is-implied-volatility)[QuestionHistorical, implied and realised volatility: what is the difference?Intermediate](/learn/questions/historical-implied-realised-volatility)[QuestionHow do I estimate the expected move from IV?Intermediate](/learn/questions/expected-move-from-iv) [All 130 questions](/learn/questions/) Explore next ## Go deeper on this question. * [QuestionWhat is IV crush around results and the Budget?A short answer with a dated chart](/learn/questions/what-is-iv-crush) * [QuestionHow are India VIX and Nifty related?A short answer with a dated chart](/learn/questions/india-vix-and-nifty) * [ToolOption payoff builderLegs on a dated Nifty chain, breakevens and charges](/learn/tools/payoff-builder) * [GlossaryInvesting glossary, 230 termsPlain word definitions, and the app’s own](/learn/glossary) Community ## Join my WhatsApp group. Scan the code, fillFill one short form, and join my WhatsApp group. Slides, sources, factsheets and the rebalance logs live there, and members join a daily Google Meet with me. New to RupeeCase? [Getting started](/getting-started) [See the terminal](/terminal) [Sign up for RupeeCase](https://invest.rupeecase.com/signup) [Join the WhatsApp group](https://forms.gle/C6HMtM1Z2GfeocQV7) [One form, one group](https://forms.gle/C6HMtM1Z2GfeocQV7)Scan with your phone camera Education only, not investment advice, a research report or a recommendation to buy, sell or hold any security. RupeeCase (QC Alpha Technologies Pvt Ltd) is not registered with SEBI as an investment adviser or research analyst. Contracts and prices shown are for illustration only, come from NSE end of day files at least 30 days old, and are not recommendatory. Derivatives trading carries a high risk of loss.