A leveraged ETF promises a multiple of an index’s return for one day. A 3x fund on the Nasdaq-100 aims to rise 3 percent when the index rises 1 percent on a given day, and to fall 3 percent when it falls 1 percent. An inverse fund does the same with a minus sign. The key words are “for one day”. Over a week, a month or a year the fund can return far more or far less than three times the index, and in a choppy market it can lose money while the index goes nowhere.

Circuit breakers are the rules that stop trading when prices move too far, too fast. US stock markets have two main layers. Market-wide circuit breakers halt every stock and options exchange when the S&P 500 falls 7%, 13% or 20% in a day. Limit Up-Limit Down (LULD) bands work one stock at a time, pausing trading for five minutes when a single name breaks out of its allowed price range. On top of those sit ordinary trading halts that exchanges call for news, plus a short-sale restriction that kicks in after a 10% drop.

A trading account with a subscription product to sell recently posted a four-tier VIX framework designed to be screenshotted and bookmarked: buy aggressively above 35, scale in between 25 and 35, hold between 15 and 25, and reduce exposure below 15. The pitch was simple and confident — “this is all you need to make millions.” The VIX sits at roughly 16 today, comfortably in the “hold” zone the post describes, which is one of the few things about it that checks out.

Markets are priced by people, and people swing between two emotions: the fear of losing money and the greed to make more of it. The CNN Fear & Greed Index is an attempt to compress that emotional state into a single number between 0 and 100 — 0 being maximum fear, 100 being maximum greed, 50 being neutral. It is one of the most-watched sentiment gauges in retail and professional finance, and one of the most misunderstood.

The Cboe Volatility Index is the most quoted and least understood number in financial markets. It is cited daily as the market’s “fear gauge,” yet most of the commentary surrounding it treats the index as a sentiment poll rather than what it actually is: a precise, formula-driven measurement of the price of insurance on the S&P 500. Understanding the distinction is the difference between using the VIX as a tool and being used by it.