Implied Volatility (IV) is the market’s current, forward-looking estimate of how much an underlying’s price is expected to fluctuate, derived (implied) backward from current option premiums using an options pricing model. It reflects expected magnitude of movement, not direction.
Related Reading
See the full explanation, including India VIX and the connection to Vega, in What Is Implied Volatility (IV)? Explained for Beginners.