What are the advantages of trading VIX futures on CME for cryptocurrency investors?
tacotruck49Dec 16, 2021 · 3 years ago3 answers
As a cryptocurrency investor, what are the benefits of trading VIX futures on CME compared to other options?
3 answers
- Dec 16, 2021 · 3 years agoTrading VIX futures on CME can provide cryptocurrency investors with a way to hedge against market volatility. By having exposure to the VIX index, which measures market volatility, investors can potentially offset losses in their cryptocurrency holdings during periods of high volatility. This can help to reduce overall portfolio risk and provide a more stable investment strategy.
- Dec 16, 2021 · 3 years agoOne advantage of trading VIX futures on CME for cryptocurrency investors is the ability to diversify their investment portfolio. By adding VIX futures to their holdings, investors can gain exposure to a different asset class and potentially benefit from uncorrelated returns. This can help to reduce the overall risk of their portfolio and provide a more balanced investment strategy.
- Dec 16, 2021 · 3 years agoFor cryptocurrency investors, trading VIX futures on CME can also provide access to a regulated and established exchange. CME is one of the largest and most reputable futures exchanges in the world, offering a transparent and secure trading environment. This can help to instill confidence in investors and attract institutional participants, which can potentially lead to increased liquidity and better trading opportunities.
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