FXCM Group, an international provider of online foreign exchange trading, CFD trading, cryptocurrencies and related services, has added Volatility Index CFDs to its range of available trading instruments. In tracking the future volatility of the markets, rather than the stock prices themselves, the Volatility Index CFD now provide FXCM’s clients with the opportunity to profit directly from the unprecedented market swings seen today irrespective of which way the market is heading.
With the ticker symbol VOLX, aka “Volatility Index”, the product has the recently launched CBOE Mini VIX Future as the underlying asset. VOLX uses the price of options on the S&P 500 and estimates how volatile those options will be between the current date and the option’s expiration date. The new CFD expires monthly in conjunction with the underlying future and then restarts on the new front contract.
FXCM’s customers can purchase micronised VOLX CFDs at 1/10th of the size of the mini VIX or 1/100th of the standard VIX™ Future. Along with the smaller sizing the majority of FXCM’s clients can benefit from 10:1 leverage (5:1 for ESMA regulated clients), significantly reducing the cost of entry.
Through offering contracts on a fractional basis, FXCM’s investors are given more control over how much risk they wish to take on, and how much money they are willing to spend, on a monthly basis.
Brendan Callan, CEO of FXCM, says: “2020 has been a big year for volatility and we are continuing to maximise trading opportunities for clients wanting to make the most of this market turbulence. With a CFD based on the VIX™, volatility is now the tradable instrument and our customers can speculate on the extreme movements that have dominated the markets this year. By significantly reducing the allowable trading size, we are making this instrument accessible to all types of traders.”