Swissquote expands its range of trading products
Swissquote has added options and futures on the VIX volatility index to its trading platform.
This expansion gives Swissquote clients the opportunity to profit from market fluctuations.
In addition, the Swissquote broker has opened access to trading Cboe options on the following indices
- S&P 500 (SPX)
- Dow Jones (DJX)
- Nasdaq (NDX)
The VIX is also known as the "fear index" because its dynamics reflect the general mood of traders and their predictions of changes in the prices of the underlying asset. The VIX is based on the prices of options on the S&P 500 Index.
The value of the VIX index is divided into three groups:
- Low volatility (less than 20%) – traders are optimistic about the direction of the asset. The lower the VIX, the higher the probability of a trend reversal.
- Medium volatility (20-30%) – Investors are positive about the future of the asset, but not overly enthusiastic.
- Elevated volatility (30-40%) – This level indicates that traders are becoming increasingly concerned.
- High volatility (over 40%) – Such indicators indicate panic in the market. In this case, there is usually a collapse in the prices of stocks included in the S&P 500.
Swissquote brokerage company started its activity in 1996 and offers its clients a wide range of trading instruments and access to MetaTrader 4 and MetaTrader 5 trading platforms, as well as Advanced Trader solution. The broker is regulated by FINMA.