HERE IS AN ANSWER TO WHETHER EXNESS FEATURES THE POPOPULAR VOLATILITY INDEX VIX
Does Exness Have VIX?
The VIX Index, sometimes known as the Cboe Volatility Index, is one of the most well-known indicators of implied volatility. The Chicago Board Options Exchange (CBOE) founded the VIX index in 1993 as a real-time volatility index for the market. It was the first benchmark to measure market volatility expectations and general market conditions. Volatility is the core of the market environment in which traders operate and is key in determining the trading strategy. In this piece, we want to answer the question, does Exness have Vix? Let’s jump in.
Is VIX Available on Exness?
Exness is one of the most respected forex and CFDs brokers in the world today. Notably, Exness is probably the biggest broker in terms of trading volume. One of the reasons why Exness attracts a large number of traders to its trading platform is the diversity of markets that it offers. This broker allows its clients to trade CFDs on forex, stocks, energies, cryptocurrencies, metals, and indices. Unfortunately, Exness does not offer the VIX index to its traders.
For investors looking to trade this asset, worry not. There are other reputable forex brokers that offer this index to their traders. Let’s look at two such brokers starting with Pepperstone.
TOP Brokers with the VIX
Pepperstone
Pepperstone has been in business for the last 13 years. During this time, the company has earned a good reputation among traders. Moreover, it is regulated by several well-known regulators around the world. These include the CMA in Kenya, the FCA, the CySEC in Cyprus, the ASIC in Australia, and the BaFin, among others. Regulations from multiple organizations are always a welcomed sight.
on another positive note, Pepperstone offers traders more than 1,200 trading instruments. These include CFDs on forex, stocks, commodities, cryptocurrencies, ETFs, and indices. Among the indices that Pepperstone provides is the VIX synthetic index (VIX Index Cash vs US Dollar Future). Pepperstone charges a spread as low as $0.16 when trading this asset on its broker site. Further, traders get a maximum leverage of 1:10. Meanwhile, there are four main trading platforms traders can use including cTrader, MetaTrader 4, MetaTrader 5, and TradingView. On these trading platforms, the broker promises fast order execution and minimal to no slippage.
XM.com
XM also allows its clients to trade the VIX index. This broker is regulated by the CySEC and the ASIC, which are two of the leading regulators in the market today. This is a huge selling point for XM. Moreover, the broker also allows its traders to greatly diversify their portfolios with access to over 1,000 different assets available for trading. These include CFDs on forex, indices, stocks, cryptocurrencies, precious metals, and energies.
When trading the VIX index on XM, traders enjoy spreads as low as 0.05 in the quote currency. Additionally, traders do not pay a commission when trading this instrument on the XM trading platform. The maximum leverage available when trading VIX on XM is 1:100. Interestingly, traders can only use the MT5 to trade VIX, despite MT4 also being available.
Basic Positions in Trading VIX Index
There are two positions you can take when trading the VIX index. You can either go long or short. It's vital to keep in mind that volatility traders are more concerned with market volatility. They are not concerned if the price of the S&P 500 will climb or decrease as they can profit from either outcome.
The VIX is a benchmark for the whole US stock market even though it only gauges S&P 500 volatility. The price of options can be a good indicator of volatility. Traders and investors tend to start purchasing options when something worries the market. The VIX reflects the level of market stress and dread, which is why it is often referred to as the fear index.
The VIX works best when utilized in conjunction with a historical analysis of support and resistance lines. This is because it is hard to predict volatility in advance. Like any implied volatility measure for options, it is expressed as an annualized standard deviation percentage.
CBOE uses the price of S&P 500 options with expiration dates ranging from 23 to 37 days to calculate the level of the VIX index, which is then weighted to produce a rolling 30-day implied volatility. The quote you see is actually a statement of the predicted percentage movement, higher or lower, in the S&P 500 from the current underlying price over the future 12 months (or annualized).
Volatility measures the movement of an asset's price. In this case, VIX measures the 30-day projected volatility produced from S&P500 Call and PUT options. A PUT option is the right to buy stock at a specified price and time is a PUT option while a CALL option is the right to sell a stock at a predetermined price and time. When PUT options outnumber Call options, it can demonstrate investors with being uneasy.
When trading volatility, you are more concerned with how much and how many times the market has moved than with the direction of change. Because of this, VIX readings are in percentages. As such, VIX’s value oscillates between 0 and 100, much like a standard oscillator.
You can understand the VIX using established levels of support and resistance. Low volatility is below 12 while regular volatility is between 12 and 20. Over 20 indicates large volatility.
Trading the VIX has the potential to be a high-risk or high-reward venture. Notably, it is best suited for seasoned traders who are familiar with volatility trading. Many investors would do better to concentrate on the long-term where they can have diversified investing strategies rather than trying to time the market. Nonetheless, the VIX index allows traders to speculate on the movement of the S&P 500 in one asset. As such, it allows traders to essentially speculate on a variety of industries without needing to invest in individual stocks.
Unfortunately, Exness does not offer the VIX index as one of the available assets for trading. However, there are other brokers with a solid reputation and trading conditions that do fill this void.