Brokers that offer their users the opportunity to trade volatility indexes such as the VIX 75 offer a way for investors to take advantage of the profit potential that arises with the fluctuation in the market. By measuring the fear and risk situations in the market, investors can invest in this index and get the maximum profit from price movements.
What is Volatility Index?
Volatility indices are real-time stock market indicators that show the expected volatility within a given time frame. Investors who want to use possible price changes for their own benefit by measuring market sentiment invest in volatility indices. The Volatility 75 Index, traded on the Chicago Board Options Exchange (CBOE), is the most popular index used to measure volatility forecasts. The index tracks the volatility of the S&P 500 (SPX) 500-weighted basket of US stock options over the next 30-day period. An increase in the value of the VIX index may indicate that there are price fluctuations in the market and there is intense speculation. TradingBeasts works with brokers AvaTrade, eToro and XTB that have the vix75 volatility index product (traded as CFDs), let’s have a look at them.
eToro is an online trading platform founded in Israel in 2007, reaching 25 million users globally. Users can invest in ETFs, commodities, stocks, currencies, CFDs, cryptocurrencies and stock market indices at this broker. Offering a complete interface for both novice and experienced traders, the platform also includes a feature that allows successful traders to copy their trades in real-time.
CFD trading is possible on eToro, which allows users to trade based on the volatility of certain assets. It is free to create an account on eToro, which offers its users a commission-free, no administration and transaction fee trading experience. Registering with eToro is relatively simple and a free demo can be opened in roughly a minute. A real account has to be verified, which takes 3 business days. On your demo as well as on your real account you can access professional charts, try your strategies with fake trades up to 100,000 USD with a virtual portfolio, copy other traders’ investments in real-time with CopyTrader, or invest in ready-made investment strategies with CopyPortfolios.
79% of retail investor accounts lose money when trading CFDs with this provider.
AvaTrade is a well-established broker, founded in 2006, with headquarters in 12 countries on five different continents. This broker offers seamless Forex/CFD trading to its clients globally. Serving in compliance with the laws of many regulators, AvaTrade can differentiate its products according to the countries of its customers. AvaTrade’s compliance with regulations by various jurisdictions has made it a safe trading platform for all clients.
AvaTrade is the first forex broker to achieve a 3A license by the Abu Dhabi Financial Services Regulatory Authority. Trading 55 different forex currency pairs, 20 stock indices including VIX 75, 17 commodity CFDs, 14 cryptocurrencies and more than 500 stocks are offered on the platform for both individuals and businesses. The minimum deposit requirement of the broker is $100.
AvaTrade offers a wide variety of deposit methods including Skrill, Neteller and MoneyBookers. If you want, you can also use a bank transfer and credit cards to deposit money, but in this case, the minimum deposit requirement changes.
71% of retail investor accounts lose money when trading CFDs with this provider.
XTB is a broker providing CFD and forex trading, with offices in 11 countries worldwide. Launched in 2002, the platform has been ranked among the top brokers by providing access to markets such as cryptocurrencies, metals, stocks, commodities, forex and indices. XTB is regulated by authorities such as FCA and KNF and overseen by supervisors such as IFSC and CySEC. XTB, which shares its financial statements with the market at regular intervals, is also a listed company.
XTB’s primary product is forex trading. Offering nearly 25 indices from all over the world, including VIX 75, the broker also offers CFD trading, commodity trading, ETF trading in addition to these products. Approximately 2000 Global Stock CFDs are listed on XTB. The broker has a mission to meet the needs of its clients quickly and satisfactorily.
XTB offers various trading courses in four categories: basic, intermediate, expert and premium. The XTB xStation 5 platform, which can be accessed from mobile devices, includes more premium courses. Those who want to receive basic training in macroeconomics, fundamental analysis methods and risk management can enrol in XTB’s courses.
74–89% of retail investor accounts lose money when trading CFDs.