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What are the advantages of trading VIX futures on CME for cryptocurrency investors?

avatartacotruck49Dec 16, 2021 · 3 years ago3 answers

As a cryptocurrency investor, what are the benefits of trading VIX futures on CME compared to other options?

What are the advantages of trading VIX futures on CME for cryptocurrency investors?

3 answers

  • avatarDec 16, 2021 · 3 years ago
    Trading 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.
  • avatarDec 16, 2021 · 3 years ago
    One 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.
  • avatarDec 16, 2021 · 3 years ago
    For 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.