From pointsandfigures: “….Volatility Exchange might offer you a chance to make some money trading where you don’t have to compete with the electronic HFT guys.
Trading volatility is sort of like trading options, or the $VIX. But this exchange does it slightly differently. There aren’t any strike prices, no puts or calls, it’s trading a straight future. This makes the trade much more straightforward than doing an option.
What you are trading is realized volatility. This is the amount of actual movement in a trading day. If you think it’s going to be a volatile day based on their formula, buy a contract. Think it’s going to be dead, sell. They trade contracts in everything.
All the contracts are cleared through the $CME clearinghouse, so there is no counterparty risk and the fees are low. I think they might even have waived fees right now.
You should take a look at this exchange and maybe give it a try. It looks like we will have some continued rough seas ahead in the marketplace, so it might be interesting to see how these contracts could increase your profitability…...
Find out more at http://pointsandfigures.com/2011/10/12/the-volatility-exchange/
No comments:
Post a Comment