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The margin requirements for VIX futures vary depending on the broker and the specific contract being traded. Generally, traders are required to maintain a certain amount of funds in their account to cover potential losses. It is important to check with your broker for the specific margin requirements before trading VIX futures.
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What is the strategy for shorting VIX?
The strategy for shorting VIX involves selling VIX futures or options with the expectation that the volatility index will decrease in value. This can be a risky strategy as the VIX can be unpredictable and subject to sudden changes.
What are the key differences between FX futures and forwards?
The key differences between FX futures and forwards are that futures are standardized contracts traded on exchanges, while forwards are customized agreements traded over-the-counter. Futures have daily settlement and margin requirements, while forwards settle at the end of the contract period. Additionally, futures are more liquid and have greater transparency compared to forwards.
What are margin requirements?
Margin requirements are the amount of credit granted investors for the purchase of securities, such as shares of stock.
What is the purpose of leverage in the forex market?
The purpose of leverage in the forex market is to significantly increase the returns provided in an investment using instruments such as "Options" "Futures" and "Margin Accounts"
How can the VIX be used to forecast the movement of the SP 500?
The VIX, also known as the volatility index, can be used to forecast the movement of the SP 500 by indicating the level of market uncertainty and investor sentiment. A high VIX suggests increased market volatility and potential for a decline in the SP 500, while a low VIX indicates lower volatility and potential for a rise in the SP 500. Investors often use the VIX as a gauge to assess market risk and make informed decisions about the future direction of the SP 500.
What is the strategy for shorting VIX?
The strategy for shorting VIX involves selling VIX futures or options with the expectation that the volatility index will decrease in value. This can be a risky strategy as the VIX can be unpredictable and subject to sudden changes.
What is a span?
SPAN means Standardized Portfolio Analysis of Risk. It's how they're calculating margin requirements for futures trading now.
How do you purchase a futures contract?
You purchase a futures contract by first opening a futures trading account, which is a margin account, with a futures broker. Once that is done, simply choose the specific futures contract you wish to buy and then pay its "Initial Margin", which is a deposit needed to start a futures trade.
What are the key differences between FX futures and forwards?
The key differences between FX futures and forwards are that futures are standardized contracts traded on exchanges, while forwards are customized agreements traded over-the-counter. Futures have daily settlement and margin requirements, while forwards settle at the end of the contract period. Additionally, futures are more liquid and have greater transparency compared to forwards.
How does one learn how to trade futures?
Futures trading is all about understanding possible financial risks. To learn to trade futures, one must learn the aesthetics of leverage and initial margin.
What are margin requirements?
Margin requirements are the amount of credit granted investors for the purchase of securities, such as shares of stock.
What happens when margin requirements are too liberal?
Margin requirements that are too liberal can damage the stock market and the economy.
Mechanism of trading in future contract?
Basically, you buy (go Long) on a futures contract when you think the underlying asset is going to go up and you go short on a futures contract when you think the underlying asset is going to go down. When you go long or short on a futures contract, you only need to pay a small deposit (typically about 10% of the price of the underlying asset) known as the "Initial Margin". Winnings are added to your margin daily and losses taken from it. When your margin drops to a level known as a "Maintenance Margin" due to losses, you will receive a "Margin Call" to top up your account back to the initial margin level. You can close off (offset) your futures position at anytime in order to cut loss or take profit. For more details on how futures trading works, please refer to the link below.
What is the stock symbol for the volatility index?
The symbol or ticker for the CBOE Volatility Index (VIX)varies depending on your quote server. VIX or .VIX are commonly used along with ^VIX (Yahoo Finance), and $VIX (Schwab).
How tall is Jimi Vix?
Jimi Vix is 176 cm.
When was Geneviève Vix born?
Geneviève Vix was born in 1879.
When was Vix Brownford born?
Vix Brownford was born in 193#.
