Dec
25
skahhh
Can you do that on Scottrade?
For engineers: I ask a question over and over when I am not sure about something. When I get answers that work and makes sense to me wholly, then I stop asking. That is how humans validate truth. If I knew everything or was afraid to fail like some who will not ask questions more than once even if they don’t “get it”, then I would not do this.
You have to remember engineer, my daughter is sick, I am helping to raise my grandchildren and sometimes when you are doing more than your share, you need a little more time to figure out things that come easily to those who do not have those problems and who have not been oppressed for most of their lives. Are you afraid someone might actually learn something and then you would not be the only one who knew something?
Can you do that on Scottrade?
For engineers: I ask a question over and over when I am not sure about something. When I get answers that work and makes sense to me wholly, then I stop asking. That is how humans validate truth. If I knew everything or was afraid to fail like some who will not ask questions more than once even if they don’t “get it”, then I would not do this.
You have to remember engineer, my daughter is sick, I am helping to raise my grandchildren and sometimes when you are doing more than your share, you need a little more time to figure out things that come easily to those who do not have those problems and who have not been oppressed for most of their lives. Are you afraid someone might actually learn something and then you would not be the only one who knew something?
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6 Responses to “How does one invest in VIX futures? Is that a commodity?”
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no. the VIX measures the volatility of the market. volatility is how much something moves, not a commodity (for instance if the Dow went up 300 points on day 1 and up 30 on day 2, day 1 would be the more volitile day). to my knowledge there is no way to invest in it. even if there were it would not be a good investment because volatility is very volitile
The previous answer describes what the VIX is.
But there is a way to invest in it; through the options market (buying or selling puts or calls). However, this is a risky investment, unless you really know what you are doing.
Given that you hadd to ask “what” it was, I would not recommend it. Even seasoned investors stay away. It is really for “traders” who have immediate access to the markets.
VIX is the ticker symbol for the Chicago Board Options Exchange Volatility Index.
I honestly think I would be doing you a disservice to give you advice about how to get into the kind of advanced trading that you are talking about. One really has to have a great deal of knowledge and confidence about what they are doing to even work the commodities market much less dealing in futures. Please consider starting out with safer and much more traditional index funds or ETFs. In the meantime, you can study these other more advanced areas and decide if they are right for you. Good luck.
The CBOE offers futures contracts on the VIX. You’d need a futures account to trade them.
The futures trade at a premium to the cash VIX index you’re familiar with and that premium decreases over time until the future and the VIX are at nearly the same price at futures expiration.
Go to CBOE.com for more info about the VIX and VIX futures.
Scottrade doesn’t allow their customers to trade VIX options; The reason they gave me is because they expire in the middle of the week. Interactive Broker will allow you to trade in VIX options however.
VIX is a commodity, that’s right, like pork bellies or corn or soybeans. VIX is the key ingredient in Taco Bell burritos. VIX grows high up in the Andean mountains and is very rare, but tasty. Stock up on VIX if you think Americans will be buying more burritos.
How many times are you going to ask this?