
The VIX option is a derivative security derived from the Chicago Board Options Exchange (CBOE) Volatility Index (VIX). It is an index that measures market sentiment and volatility based on the prices of various S&P 500 options. It has become increasingly popular among investors as it offers excellent potential for finding opportunities in rising and falling markets. The VIX option exposes traders to expected future price movements in the underlying asset without owning it. In Singapore, the VIX option is traded on the SGX Derivatives Market.
How to trade the VIX option
Now that you know the VIX option, you need to learn how to trade it. For successful VIX options trading, traders must understand the trading mechanics, market conditions, and the nature of volatility. It will help traders manage their risks and take advantage of opportunities.
Learn about volatility
Before trading the VIX option, traders should understand volatility and …
