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Trading The VIX

They are also used to value options on the vix index even though those are cash settled. The VIX futures and VIX are settled on the same day. The Wednesday that is thirty days prior to the third Friday of the calendar month. One thing is for sure a trader needs to learn how to trade this type of index or he will quickly wipe out their trading account. At most brokerages you have to apply to trade this type of index. This type of futures trading is very speculative and is not for all investors. Traders need to learn how to do this type of trading.

They need to know their risk factors and how much money they are willing to risk. When trading this type of index you start with what you know and many brokers offer free classes to help you become a better trader. This will make you a more confident futures trader and leaning how to read the charts is a big step in the right direction. Traders need to keep up with the current trends and news that can effect the markets. Learn support and resistance areas and know that world news can change the direction of the futures markets.

Trading VIX Derivatives will show you how to use the Chicago Board Options Exchanges S&P 500 volatility index to gauge fear and greed in the market, use market volatility to your advantage, and hedge stock portfolios. Engaging and informative, this book skillfully explains the mechanics and strategies associated with trading VIX options, futures, exchange traded notes, and options on
exchange traded notes.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.