CFD on VIX

[Derrenoption]

Hello,

I wonder if it exists CFDs for trading the VIX which means that if price goes
up you earn and if price goes down you loose dollar for dollar. Like a CFD for a stock symbol?

Thank you

 

[Pekelo]

It does but you have to hunt for it:

http://www.contracts-for-difference.com/markets/Trade-Volatility-VIX.html

For example:

http://www.avatrade.com/trading-info/financial-instruments-index

 

[Derrenoption]

In addition to futures and options on the VIX which have been introduced, you can now get a contract for difference (CFD) on the value of the VIX, and this represents the best way for many traders who want to take a direct conjecture on the direction that it will move.

I was reading the article there and could then find the above. I think I need to confirm this exactly. Is it true that exists CFDs exactly as it does for stock symbols where if VIX has a current spotprice at for example 11.54$. Then we can buy a CFD at this spotprice where the CFD will have a multiplier of 100 if price goes up or down and we can then sell this CFD whenever we want?

(Also a confirmation that the CFD is on the VIX price itself and not a CFD on the option or the future?)

 

[cdcaveman]

The answer is no

 

[Maverick74]

I was reading the article there and could then find the above. I think I need to confirm this exactly. Is it true that exists CFDs exactly as it does for stock symbols where if VIX has a current spotprice at for example 11.54$. Then we can buy a CFD at this spotprice where the CFD will have a multiplier of 100 if price goes up or down and we can then sell this CFD whenever we want?

(Also a confirmation that the CFD is on the VIX price itself and not a CFD on the option or the future?)

As I explained in your other thread, there is NO way to buy spot VIX period. You have to pick your spot on the curve. This will hold for CFD's or any other derivative product.

 

[Derrenoption]

Thanks Maverick, then I understand that it is not possible to buy the VIX on the spot.
I think this was what I wondered about.

Thanks!

 

[Robert Morse]

Hello,

I wonder if it exists CFDs for trading the VIX which means that if price goes
up you earn and if price goes down you loose dollar for dollar. Like a CFD for a stock symbol?

Thank you

You are basically asking if there is a forward contract on a forward contract. Why would you need that? You would be swapping one good faith deposit for another where one your counterparty is the exchange and the other is your broker.

 

[cdcaveman]

bottom line is there are several ways to trade vix ... options on vix, futures, etf's options on futures, options on eft's ... you can no escape forward risk.. vix is mean reverting in the long run and is priced as such in the forward curve..

 

[Maverick74]

You are basically asking if there is a forward contract on a forward contract. Why would you need that? You would be swapping one good faith deposit for another where one your counterparty is the exchange and the other is your broker.

No Bob, what he is asking is what many here on ET ask and that is,I see the VIX at 11, that looks like free money, how can I buy it....at 11!!! They just don't understand how these structures work.

 

[cdcaveman]

No Bob, what he is asking is what many here on ET ask and that is,I see the VIX at 11, that looks like free money, how can I buy it....at 11!!! They just don't understand how these structures work.

exactly!!