Since the Volatility Index (VIX) was developed in 1993 many traders have asked about a VIX-based product to trade. Good news – it’s here! VIX Futures contracts will be traded at the CFE - The Chicago Board Options Exchange’s Futures Exchange. Below is a list of the contract specifications:
Some of the possible uses for the VIX Futures may include taking advantage of a market view on the direction of volatility, hedging volatility risk, managing risks associated with growing markets for volatility and variance swaps and taking advantage of arbitrage opportunities. The VIX futures will be regulated by the CFTC and margin requirements will be determined by The Options Clearing Corporation. Advisors who wish to discuss or use these products with clients need to hold a Series 3 license. Individuals who wish to trade VX futures need to have a futures account with a registered futures broker or have an Introducing Broker (IB) relationship with such a firm. Another exciting product soon to follow is options on the VXB, which are expected in the second quarter of 2004.
Options are not suitable for every investor. For more information, consult your investment advisor. Prior to buying and selling options, a person must receive a copy of Characteristics and Risks of Standardized Options which is available from your broker or from The Options Clearing Corporation (OCC) by calling 1-888-OPTIONS, or by writing to OCC at One North Wacker Dr. Suite 500, Chicago, IL 60606. |
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Since the Volatility Index (VIX) was developed in 1993 many traders have asked about a VIX-based product to trade. Good news – it’s here! VIX Futures contracts will be traded at the CFE - The Chicago Board Options Exchange’s Futures Exchange. Below is a list of the contract specifications: CBOE Volatility Index (VIX) Futures CBOE Volatility Index-- VIX Jumbo CBOE Volatility Index -- VXB VIX Futures--
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