Can you just buy VXXY when it's low and sell it when it's high?

Discussion in 'Trading' started by IronFist, Jan 10, 2021.

  1. This chart looks perfect to trade. I know there have been threads on why this doesn't work. Can someone explain it to me?
     
  2. narafa

    narafa

    What is VXXY?
     
  3. maxinger

    maxinger

  4. Girija

    Girija

    Look at its 5 yr chart and then tell us what you think. It is programmed to lose value on long term holding. Unless you understand volatility futures stay away from it. You can play it if you can predict a vol spike. But a better alternative will be uvxy.
     
    stochastix and KCalhoun like this.
  5. ahem..yes if you are good
     
  6. lindq

    lindq

    I suggest you stay clear of VIX derivatives until you've carefully considered all the risks, of which there are many. Most of these are highly leveraged to an index which itself can be explosive.

    You especially want to be careful trading these ETFs/ETNs overnight, or intraday without clearly defined stops.

    Good luck.
     
    GuerrillaTrading and stochastix like this.
  7. my friend asked me to explain volatility derivatives .. I said I got about 6 books and there's hundreds of phds on the topic , what does he want to know? he said not that much so I said don't worry about it. same advice applies . study up.and be smart
     
  8. Guys sorry I meant VIXY
     
  9. What danger? Buy around 10 sell around 20. Repeat.
     
  10. maxinger

    maxinger


    VIXY chart looks perfect not to trade.

    It died (ie not moving) 2 months ago.
    [​IMG]

    Someone has to resurrect it first using a defibrillator or whatever.

    your Q :
    What danger? Buy around 10 sell around 20? Repeat.
    You can try using demo/life first and see if it works.
    Good luck!
     
    Last edited: Jan 12, 2021
    #10     Jan 12, 2021