on I.B i don't get options on VIX futures... dmo do you know any retail broker that offers that and exchange?
Sure you do. Just type "vix" in one of the boxes, hit return, then under "CBOE Volatility index - CBOE" click on Options > Oct > 2008. Then choose the options you're interested in.
There are many ways to trade vix futures. It all depends on your objective(perceived edge). You can trade switches directionally, you can trade convergence to vix spot, you can replicate vols(synthetic vix), you can hedge book index vega exposure, etc. Furthermore, illiquidity and misunderstanding by the masses is somewhat of an edge in itself.
Hi rallymode I don't trade VIX but I would like to know how do you simply replicate VIX spot ? IIRC to hedge Vega exposure of an index book, one (professional) used variance swaps. It's something somewhat difficult for a retail trader. So how do you hedge an index book with VIX future. Do you convert all your vegas in a one (front) month vega exposure then you hedge it (though the links between vegas for different maturities aren't quite steady) ? Thx in advance for your answer.