VIX Trading

VIX Trading

VIX trading provides investors and speculators with an easy mechanism to take on long or short risk exposures to changes in the anticipated level of equity market volatility. VIX trading may seem to outsiders as being more like legalized gambling than being a useful part of a modern financial system. But the key role of our financial markets is to determine the market’s reward for bearing equity risks. The VIX provides an efficient mechanism for transferring the risk of equity market volatility between market participants so that participants can manage their risk exposures to changing levels of market volatility.

Leave a Reply 0 comments

Leave a Reply: