Mini VIX futures are based on the VIX Index, and reflect the market's estimate of the value of the VIX Index on various expiration dates in the future. At 1/10th the size of the standard VIX futures contract, Mini VIX futures are designed to provide additional flexibility in volatility risk management and greater precision when allocating among smaller managed accounts.To get more news about land f/x, you can visit wikifx.com official website.
Mini VIX futures provide market participants with opportunities to trade their view of the future direction of the expected volatility of the SP 500® Index. This contract may also present opportunities to manage risk, generate alpha or diversify a portfolio. The smaller notional value of Mini VIX futures may appeal to:
Commodity Trading Advisors (CTAs) as a convenient, sub-account allocation contract size
Sophisticated market participants looking to hedge their portfolios or express their view on US stock market volatility, and
Proprietary trading firms seeking to execute volatility strategies or provide counter-party liquidity
Before you trade Mini VIX futures, it’s important to understand the following:
Mini VIX futures are complicated financial products that are suitable only for sophisticated market participants.
Mini VIX futures involve the risk of loss, which can be substantial and can exceed the amount of money deposited for the futures position.
Market participants should put at risk only funds that they can afford to lose without affecting their lifestyles.
Before transacting in Mini VIX futures, market participants should fully inform themselves about the characteristics and risks of Mini VIX futures, including in particular those described below. Mini VIX futures market participants also should make sure they understand the contract specifications and the methodologies for calculating the underlying VIX® Index and the settlement values for Mini VIX futures.
Underlying Index: Mini VIX futures are based on the VIX Index, which is a financial benchmark designed to be a market estimate of expected volatility of the SP 500®. The VIX Index is calculated by using the midpoint of quotes of certain SP 500 Index options. (More information on how the VIX Index is calculated is available in our VIX FAQs.)