New Assets: The VIX Index is now available to trade on TradeConnect!
The Cboe Volatility Index is now available to trade using crypto as margin collateral on the TradeConnect multi-asset trading network!
We are excited to announce that we have launched the VIX index into our Futures product offering. This means that you can now trade the VIX index on the TradeConnect Multi-Asset Network using bitcoin or ethereum as your margin collateral.
Download the TradeConnect App
You can download the TradeConnect IOS app from the App Store to start trading the VIX index as well as over 60 global financial assets using crypto as margin. You can also join our TradeConnect Android App waiting List to go in the draw to win over $300 USD in your choice of either BTC or USD when it goes live!
Intro to the VIX Index
Market turbulence can make the most astute traders nervous, so it is during these times that many traders look towards volatility markets such as the Cboe Volatility Index, otherwise known as ‘The VIX’, to find signs of protection against heightened volatility. For other traders, volatility equates to opportunity and so The VIX presents less fear of the unknown, but fear of missing out.
So let’s take a closer look at how you can get started trading the Volatility Index…
What is the VIX index (VIX)?
The VIX index, otherwise formally known as the Chicago Board Options Exchange (Cboe) Volatility Index, is a market index which is used to measure the implied volatility of the stock market and general investor sentiment over the next 30 day period. It uses the ticker symbol VIX.
Making its formal debut in 1993, the VIX index was first developed by Dr. Robert Whaley, a regular contributor to well-known financial publications such as The Wall Street Journal, and was based on the S&P 100.
Ten years later, in 2003, both the Cboe and Goldman Sachs updated the VIX index to reflect a new way to measure expected volatility based on the S&P 500. Further changes since then have seen it transform from lagging to a leading volatility indicator.
When, and if, the VIX index rises, it is expected that volatility will rise and stock market prices will fluctuate more quickly and sharply, for this reason, it has garnered names such as the ‘the fear index’ or ‘the fear gauge’.
How does the VIX Index Measure Volatility?
In order to show volatility, the VIX index tracks put and call options of the S&P 500. The typical indicative value is 30. When the VIX reading is above 30, it is a sign of high volatility and that there is an inherent fear in the market. Alternatively, if the VIX index reading is below 30, it denotes low volatility (prices are not changing too quickly), and fewer concerns or tension by participants in the market.
How can I trade the VIX index?
VIX trading is accessible through CFDs on the TradeConnect platform. The good news is that this is probably the easiest and most easily accessible way of trading the VIX index.
Benefits of trading the VIX index on TradeConnect?
- Quick and easy access to global markets
- Over 60 financial assets to trade in one platform
- Ability to speculate on price movement
- Up to 500x leverage lets your capital go further
- Go long or short the market
- Lower cost barriers to trade
- Ability to hedge your positions
- Access to deep pools of liquidity
- Use your crypto as collateral
- Easy for both beginners and advanced traders
VIX Trading Information:
To get started trading VIX with bitcoin or ethereum on TradeConnect, read our VIX contract specifications on our website.
In summary:
Volatility offers exposure to both great opportunity and great fear. Whatever your threshold is, with market volatility being a critical factor in a trader’s profitability, it is easy to see how the VIX has become one of the most common barometers of market sentiment helping financial theorists, risk managers and traders make informed decisions about the month ahead.
