how to trade the vix?

Discussion in 'Trading' started by passi, Aug 7, 2005.

  1. passi

    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.

    where i can see a choice of options of the vix?

    thanks
    passi
     
  2. nkhoi

    nkhoi Moderator

    goggle on key words vix and cboe you should get all info you need
     
  3. Here is the link to the base symbol for the VIX futures for IB (VBI is what you should type in)

    http://www.interactivebrokers.com/cgi-pub/exchange_display_web.pl?einfo=usCFE2&file=CFE.html

    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

     
  4. VBI is a large contract with a large spread. Best used as a hedge into short-vol strategies. Long VBI/short vol.
     
  5. passi

    passi

    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 ?

    p
     
  6. passi

    passi

    to riskarb:

    quote:
    VBI is a large contract with a large spread. Best used as a hedge into short-vol strategies. Long VBI/short vol.




    long the vbi means the future of the vix. and what means vol?
     
  7. well, you'll get all the info that google thinks you need, at least. but don't get me started on that.
     
  8. Option volatility -- long VBI, short option volatility [-vega] in puts.