How to trade
Volatility Index

VIX is an essential indicator for traders who wish to monitor the market's volatility. Everyone who wants to understand how to trade VIX should focus on a strategic approach to managing risk or capitalizing on market fluctuations.

How to trade VIX?

Trading VIX involves understanding its nature as a measure of market volatility rather than a traditional stock or index. Those taking their first steps into the market can learn how to trade VIX with a demo account available on the SimpleFX platform. This simulated environment allows traders to familiarize themselves with the index's behavior without financial commitment. SimpleFX's feature of no trade commissions is also essential for trades. Moreover, staying informed about broader market trends, economic news, and geopolitical events is crucial, as these factors can significantly impact market volatility.

How much do you need to start trading VIX?

One of the features of SimpleFX is the absence of a minimum deposit requirement. It facilitates more accessible entry for traders, regardless of their budget. However, investors who start trading VIX or other indices must remember about uncertainty and unpredictable obstacles. It's pivotal to emphasize that trading inherently carries risks. As with all investments, only commit funds that investors are prepared to lose.

Does the VIX pay the dividend?

The VIX is a market index based on the SPX500 index option and does not pay dividends. It is not a stock or a bond but rather a measure of market expectation of near-term volatility. Therefore, the concept of dividends does not apply to the VIX. Traders interested in the VIX should focus on understanding how volatility is priced into options and how this index can be used as a tool for hedging or speculation based on market volatility.

What time is the VIX trading?

VIX is traded during the regular trading hours of the U.S. stock markets, typically from 9:30 AM to 4:00 PM Eastern Time (ET). Given its nature as a reflection of market volatility, VIX can be particularly sensitive to market news and events. Traders should keep tabs on the global economic calendar and news events that might trigger volatility. The SimpleFX platform provides traders with up-to-date information and tools to monitor VIX effectively, enabling them to make informed decisions based on current market conditions.