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Volatility index


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Can anyone shed light on what the volatility index on IG tracks? It doesn't seem to track the classic VIX index, neither those that are a few weeks or months out. I figured it may be an average of say the first and second month VIX futures, but can someone clarify what the underlying is? Thanks!

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  • 2 weeks later...

good question - footnote 11 here gives (only) a high-level answer: https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/fees-and-charges/what-are-igs-indices-spread-bet-product-details

 

...it refers to their commodity pricing method - which I think is described here:

https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/fees-and-charges/how-are-spot-commodities-priced--and-how-is-my-overnight-funding

 

...which would be consistent with what you said - some kind of average between 1st and 2nd nearest contract price 

 

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    • This is not an acceptable explanation for me unfortunately, I am fully aware of the need to move spreads and I had accounted for that. Especially at the open of a market, but your spread was totally unreasonable the spread on DEC contracts is already at 130pip standard, to increase it to 400pips and hold it there even after 5 mins of trading. As my execution was a 09:06 the main market volatility had already been accounted for.   So disappointing after 6years being a customer and on a profitable trade as well: 
    • Dear @MB1470, Thank you for your post. Please note that dealing spreads on shares are subject to variation, especially in volatile market conditions or other unusual circumstances.  Market spreads can widen significantly, particularly at the beginning and end of the trading day, and minimum spreads may exist. Thanks, KoketsoIG
    • This morning at the market open on NOVO DEC contracts. On Spread Bet.    the spread moved from 138pips to close to 400 pips? How can this be reasonable the candle is only displayed on a 15-2min time period not on smaller periods. At market open 09:00 ????? How is this even remotely reasonable?     
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