If you are doing anytype of short term trading I think you will be wasting your time. I would love to trade it but the spreads are so wide you can drive a truck through them! Also I can't seem to see hardly any correlation from the VIX index vs VBI. One day one might be up 2% and the other down 1% with the bid still up 1%. Extremely difficult to trade short term. That is too bad because it seems like a really great instrument to trade.
Eric
Quote from passi:
hello!
i want to trade the vix. i have an account by IB, but they dont offer the vix future.
where and how i can trade the vix. it doesnt matter if future or options.
i heard about it, that short term is time waisting.
my idea is midterm trading. to hold a position form 1 to 8 weeks, depending on the move.
regular i trade the us stocks on eod base. but sometimes the vix is so down (maybe 6 times a year) that i want to risk a long position. it is like a add on to my portfolio
but you wrote also that the correlation beetween the future and the vix himself is not so exact? so i have to be careful, thanks. you have also other experiences ?