The S&P/ASX 200 is like a big toy box filled with lots of different toys, but instead of toys, there are 200 different companies inside. These companies are all from Australia and they have all agreed to work together and be part of the toy box.
Sometimes, the companies in the toy box can get a little scared and worried because they don't know what might happen. This is where the VIX comes in. The VIX is like a special toy that tells us how scared or worried the companies are feeling.
If the VIX is high, it means that the companies in the toy box are scared and worried about something happening. If it's low, it means that they are feeling more confident and not as worried.
So, if we want to know if the companies in the S&P/ASX 200 are feeling scared or confident, we can look at the VIX to help us understand. It's like looking at the facial expressions of the toys in the toy box to see how they're feeling.