VIX ETF/ETN - Stocks and ETFs Trading | futures io social day trading
futures io futures trading


VIX ETF/ETN
Updated: Views / Replies:1,856 / 19
Created: by isla Attachments:5

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 5  
 
Thread Tools Search this Thread
 

VIX ETF/ETN

  #1 (permalink)
Elite Member
London/UK
 
Futures Experience: Intermediate
Platform: NinjaTrader
Broker/Data: Optimus/Rithmic
Favorite Futures: ES, 6E, FESX
 
Posts: 104 since Jun 2012
Thanks: 76 given, 154 received

VIX ETF/ETN

Hello

I would like to find out what is a good instrument to day trade VIX on the short side. I found information that iPath S&P 500 VIX Short-Term Futures ETN (ARCA:VXX) is the most widely traded VIX product (not sure how compared to the futures), but can you short it? Also there is an inverse iPath Inverse S&P 500 VIX Short-Term ETN (ARCA:XXV).

Does anyone have any experience day trading any of these and if so, with what broker? Interactive Brokers has both, but are there any limitations to the duration or frequency of trades?

I only have experience with futures and don't know much about trading ETFs/ETNs so will appreciate any advise.

Thank you

Reply With Quote
The following user says Thank You to isla for this post:
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Elite Member
Georgia, US
 
Futures Experience: None
Platform: Various
Favorite Futures: Various
 
josh's Avatar
 
Posts: 4,897 since Jan 2011
Thanks: 5,143 given, 11,242 received


@isla, I just saw this thread and I know it's been a few months but thought I'd respond. I trade VXX and yes, you can short it, but sometimes it is hard to borrow and you have to locate it.

Reply With Quote
The following 2 users say Thank You to josh for this post:
 
  #4 (permalink)
Elite Member
London/UK
 
Futures Experience: Intermediate
Platform: NinjaTrader
Broker/Data: Optimus/Rithmic
Favorite Futures: ES, 6E, FESX
 
Posts: 104 since Jun 2012
Thanks: 76 given, 154 received

Thanks for reply, josh!

Would you be so kind to post a screenshot of its depth? How thick is it normally in no-news environment?

Reply With Quote
 
  #5 (permalink)
Elite Member
Georgia, US
 
Futures Experience: None
Platform: Various
Favorite Futures: Various
 
josh's Avatar
 
Posts: 4,897 since Jan 2011
Thanks: 5,143 given, 11,242 received


isla View Post
Thanks for reply, josh!

Would you be so kind to post a screenshot of its depth? How thick is it normally in no-news environment?

Aggregate view below--ARCA not included in these numbers because of some data experimentation I'm doing, so you can multiply these numbers by about 2. It is very thick, about half SPY daily volume and usually a penny or two thick. It acts up and loves to take nice .30 plunges every now and then but of course you would expect it to.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

Reply With Quote
The following 2 users say Thank You to josh for this post:
 
  #6 (permalink)
Market Wizard
Columbus, OH
 
Futures Experience: None
Platform: NT 8, TOS
Favorite Futures: ES
 
Silvester17's Avatar
 
Posts: 3,332 since Aug 2009
Thanks: 4,579 given, 10,313 received

@isla

here's a list with volatility etf's. the good thing is, when you click on a etf in that list, you can compare it to another etf. cool feature

Top 10 Volatility ETFs

I like the xiv as an inverse option. it has decent volume. looks like this (of course now it's after the close):

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

Reply With Quote
The following 3 users say Thank You to Silvester17 for this post:
 
  #7 (permalink)
Elite Member
London/UK
 
Futures Experience: Intermediate
Platform: NinjaTrader
Broker/Data: Optimus/Rithmic
Favorite Futures: ES, 6E, FESX
 
Posts: 104 since Jun 2012
Thanks: 76 given, 154 received

I thought that VIX or VXX roughly represents perceived volatility in near future independent of market direction. But the more I watch it, the more often it seems to be just moving opposite to ES (selling off when ES rallies and vice versa).

Historically implied volatility increases in bear markets. As far as I know, there is no agreement on what causes what (plunge in prices requires larger risk premium by investors, or volatility/bad news causes more volatility). But if we look at volatility as just a rate of change in price, why should direction matter? Can this inverse relation be explained by where we are in a bigger picture? Because we went up so much, the downside risk is more important? Did anyone watch VIX intra-day in 2009 when stocks were bottoming out?

I understand this question may get quite complicated, depending on degree of detail, so if anyone can suggest a good online resource it'll be greatly appreciated.

Reply With Quote
The following user says Thank You to isla for this post:
 
  #8 (permalink)
Market Wizard
Columbus, OH
 
Futures Experience: None
Platform: NT 8, TOS
Favorite Futures: ES
 
Silvester17's Avatar
 
Posts: 3,332 since Aug 2009
Thanks: 4,579 given, 10,313 received


isla View Post
I thought that VIX or VXX roughly represents perceived volatility in near future independent of market direction. But the more I watch it, the more often it seems to be just moving opposite to ES (selling off when ES rallies and vice versa).

Historically implied volatility increases in bear markets. As far as I know, there is no agreement on what causes what (plunge in prices requires larger risk premium by investors, or volatility/bad news causes more volatility). But if we look at volatility as just a rate of change in price, why should direction matter? Can this inverse relation be explained by where we are in a bigger picture? Because we went up so much, the downside risk is more important? Did anyone watch VIX intra-day in 2009 when stocks were bottoming out?

I understand this question may get quite complicated, depending on degree of detail, so if anyone can suggest a good online resource it'll be greatly appreciated.

in short the vix is also called "fear" index. the higher the vix, the more "fear" is in the market. but I like to mention that a very low vix can also be a bearish sign. because everybody is bullish and therefore long

a good read is from the cboe. it describes also the year 2009

http://www.cboe.com/micro/VIX/TheVixRealityCheckMay10.pdf

Reply With Quote
The following 4 users say Thank You to Silvester17 for this post:
 
  #9 (permalink)
Trading for Fun
New York, New York
 
Futures Experience: None
Platform: Takion
Broker/Data: GPC
Favorite Futures: Stocks
 
Limitless100's Avatar
 
Posts: 97 since May 2014
Thanks: 163 given, 55 received

I personally work with the VXX. I like the way it moves along with it's daily volume. It definitely can move fast though, so I wouldn't recommend being totally lax about your trading!

Reply With Quote
The following user says Thank You to Limitless100 for this post:
 
  #10 (permalink)
Elite Member
Amsterdam
 
Futures Experience: None
Platform: J.A.R.V.I.S.
Favorite Futures: N/A
 
Cogito ergo sum's Avatar
 
Posts: 193 since Jul 2010
Thanks: 211 given, 158 received


Even though the VIX and VXX appear to be similar products, they are in fact quite different. Make sure to thoroughly understand each product before you buy or sell it.

For example:

The VXX is an exchange-traded note ("ETN") based on The S&P 500 VIX Short-Term Futures Index, which is designed to provide access to equity market volatility through CBOE Volatility Index ("VIX") futures. Specifically, the S&P 500 VIX Short-Term Futures Index offers exposure to a daily rolling long position in the first and second month of VIX futures contracts and reflects the implied volatility of the S&P 500 Index one month later. The index futures roll continuously throughout each month from the first month of the VIX futures contract into the second month of the contract.

<-- VXX has drag, price moves are dependent on both the first and second month futures.

I personally don't like to outright short the VIX Index or /VX futures . Mainly because it has an embedded asymmetric risk vs reward relationship with a price floor present

Thankfully we have other derivatives to reduce overall risk with the use of other volatility products. With that said there are interesting opportunities to trade volatility as an asset class. With these products just make sure that you know what you are doing and what you are getting yourself into

Reply With Quote
The following 3 users say Thank You to Cogito ergo sum for this post:

Reply



futures io > > > > VIX ETF/ETN

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Linda Bradford Raschke: Reading The Tape

Elite only

Adam Grimes: TBA

Elite only

NinjaTrader: TBA

January

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
VIX Future and Mini VIX (VX/VM) vicken Reviews of Brokers and Data Feeds 5 January 26th, 2013 12:18 PM
Trading the VIX Bosch777 The Elite Circle 20 December 10th, 2012 11:22 AM
VIX ncsutrader Options on Futures 2 December 10th, 2012 03:01 AM
Vix to 40+ Quick Summary News and Current Events 0 November 21st, 2011 02:10 AM
VIX% numbers alexman Traders Hideout 2 October 8th, 2010 08:00 AM


All times are GMT -4. The time now is 08:40 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-12 in 0.17 seconds with 20 queries on phoenix via your IP 54.90.207.75