Vix: new minimum price INTERVALS/DOLLAR VALUE per tick

Discussion in 'Index Futures' started by volix, Feb 2, 2009.

  1. volix


    Friday 2009.01.30 there was the old one

    0.01 points, equal to $10.00 per contract
    google cache! vix Product Specifications

    Now Monday 2009.02.02 there is a new one!

    0.05 points, equal to $50.00 per contract
    CBOE Futures Exchange - Volatility Index (VIX) Futures

    Was there an announcement? :confused:

    CFE lost a lot of volume in the last months and now they change the to 0.05 points!? Are they crazy? Its not nice to scalp now... my be it takes only some time getting used to?
  2. volix


    It looks like it, yes..... :p

    Feb 02, 2009
    VIX Futures
    Dear Trader,
    Please be advised the CFE will no longer accept VIX with penny prices. Orders will have to conform to 0.05 increment values.
    Interactive Brokers Customer Service
  3. 1) At "high" prices levels, also coinciding with "high" volatility, bid-ask spreads widen out anyway.
    2) It would be better to not increase the tick size and let the locals attempt to be "5 bid, at 10" instead of "6 bid, at 7".
    3) If the ulterior motive of the exchange is to kill the contract, then they should get their wish, especially if the VIX declines greatly. :cool:
  4. volix


    I see! Its really cosmetic and marketing action. They want take the scare of traders who were afraid by this nice spreads the last moths! ;)

    1) if the "high" prices levels and "high" volatility decrease again, than CFE may be widen the increment again? ;)

    2) So we have the old "6 bid, at 7" instead of "5 bid, at 10"! ;)

  5. i do my share of vx spread trading. had no problems with the .05 increments at all today. in fact; i got entries .10 better on a front month buy.

    i take it you scalp these instruments?