Seize the Opportunity: Trade CFD on the VIX Index
In the financial world, it’s often said that when the storm clouds gather, opportunity strikes. This is evident with the stock-market’s recent turbulent winds, giving savvy traders and investors a prime chance to harness its power. With the VIX Surge highlighting the intricacies and the very real duplicity of volatility wagers, there’s no better time to discuss trading Contract for Difference (CFD) on the VIX Index.
What is the VIX Index?
The CBOE Volatility Index, commonly referred to as the VIX, is an index representing the market’s expectations of 30-day forward-looking volatility. Dubbed as the “fear index”, it gauges the market’s anxiety. A surge in VIX values indicates increased volatility, which generally corresponds with a drop in the stock market.
Why Trade CFD on the VIX?
Recently, Pravit Chintawongvanich at Macro Risk Advisors highlighted the value of “50 Cent’s” purchases of call options on the VIX index. This move, amid the backdrop of record-low VIX values, brings up the crucial question: Should investors be apprehensive about the VIX’s historic lows? The answer might be more optimistic than you’d think. Many experts suggest that it’s a golden opportunity to trade CFDs on the VIX.
Moreover, real results back this sentiment. The profits witnessed by those who have followed specific strategies and recommendations are a testament to the potential the VIX holds.
To put things into perspective, consider the recent performance of the S&P 500. It recorded a drop of 1.82% to 2357.03, marking its second day of a 1 percent or more decline since October 2016. Such market movements emphasize the potential gains one can achieve with VIX.
VIX CFD Trading Insights
Current details on CBOE Volatility Index (VIX) Futures:
- High: 11.43
- Low: 11.28
- Buy: 11.43
- Sell: 11.33
- Spread Per Unit: 0.10 USD
- Spread (%): 0.8905%
- Premium Buy: -0.0139
- Leverage: 1:25
- Initial Margin: 4.0000%
Harness the Power of VIX
As we navigate through the currents of the stock market, it’s crucial to be equipped with the right tools and strategies. Trading CFDs on the VIX offers just that — a chance to capitalize on market volatility. So, as the saying goes, “when the going gets tough, the tough get going.” Now might be the right time for you to delve into the world of VIX CFD trading and make the most of the market’s movements.