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Speculating on The VIX With CFDs

The volatility index, or VIX, is one of the most common barometers of market sentiment. For traders, the VIX not only represents a useful tool for assessing risk but also the opportunity to capitalise on volatility itself. Discover how you can trade the VIX – including examples of volatility trading and how to short the VIX.

You can trade the VIX Index (CFD) as a means of speculating directly on its direction.
VIX is used as a hedge for the S&P500 long position. The VIX acts as if it is negatively correlated to the broad market, so it generally goes up when the market is falling and falls when the market is bullish. A correlation of 88% can be accredited to this event, according to the CBOE.

It is typically addressing VIX CFD trades like any other indices CFDs. As so, you can trade whenever the market is available for trading, and that covers both pre-market and after-market timeframes. The standard daily volume consists of 75 million shares, including its liquidity and spread are excellent; the bid-ask spreads are just a cent.
Here are a few of the best CFD brokers for trading VXX Volatility.

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