for decades, ethough, volatility index, known as the vix has provided a gauge of traders' expectation of future volatility. in the past seven years investment firms have ha concentrated ee traded products whose volume the bas whether this volility measure rises or falls during a given day. the most populare to v on volatility staying low, issued by credit swiss under the symbol ixvt l all of its value on monday's market route. for example, if the vix falls 10% in theday, the xiv goes up 10%. 17 as stocks rallied in a steady calm way, it delivered a 187% return. but when the vix surged by more than 100% on monday from 18 to 38, the xiv was effectively wiped out. not before, though, the managers of the xiv and many other investors using similar strategies were forced to buy futures contracts on the vix to o offset their losses. this activity has been blamed for the contigeed s in the volatility index. in turn it has driven other big investmentors who use the vix has a signal of stock market risk to slash their stock holdings. there is no way to know for sure how important this activity