Jump to content

volatility index


skolski

Recommended Posts

Hi 

Can anyone advise me why the volatility index (1 GBP contract)  index doesn't exactly match the VIX, although movements correlate its several points higher on IG than VIX? 

VIX  = 17.68

Volatility index (1 GBP) = 20.46

Cheers

Link to comment

It could be that IG's Volatility offering is a "spot" price made up of a combination of the nearest two months VIX futures contracts which are both currently trading at a premium to the "cash" market. Note that spot products can be subject to a daily adjustment, usually a charge if in "contango" (later futures price higher than nearer month, partly to account for the interest you would earn on the money not required as margin as compared not earned if you had to buy the spot product outright paying in full) but sometimes it can be a credit if the market is in "backwardation", i.e. the later month trades lower in expectation of more supply (for commodities) or in the case of the VIX more calmness after a spike. 

Why the actual construction of the product isn't clarified  in the "Info" tab on the order ticket is a mystery.

Link to comment
6 hours ago, skolski said:

Hi 

Can anyone advise me why the volatility index (1 GBP contract)  index doesn't exactly match the VIX, although movements correlate its several points higher on IG than VIX? 

VIX  = 17.68

Volatility index (1 GBP) = 20.46

Cheers

time lag in all index though are you factoring in the spread also.

Link to comment

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • General Statistics

    • Total Topics
      16,009
    • Total Posts
      76,724
    • Total Members
      63,932
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Pranay
    Joined 19/09/21 01:18
  • Posts

    • Interesting data from the latest weekly PHE covid report download (as highlighted in the 'UK Vaccination Programme Part 1'. (article linked several posts above)   Attendance to emergency care and deaths from Covid (Delta)   6 months 1 Feb to 29 Aug 2021Unvaxxed     219,716Vaxxed         222,693     (27,993 + 80,877 + 113,823)   So obviously the vaccines do nothing to reduce infection and illness.But when looking at deaths alone the vaxxed are worse off. 68 per cent of covid deaths when including the partially ‘vaccinated’; while the ‘unvaccinated’ made up less than 30 per cent, when the vaxxed are less than 60% of the population.   So the Vaccines don't work they just make things worse. Reminder that when the drug companies said their vaccines had an efficacy of 95% what they meant was the difference between 0.88% (next to nothing) and 0.04% (also next to nothing). But that was against the now extinct Alpha not the now dominant vaccine resistant Delta (and all subsequent variants).   https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1014926/Technical_Briefing_22_21_09_02.pdf
    • The DMA platform is a special download so you would know if you had it. The IG web based platform as used by most clients is as described below.
    • @Caseynotesthanks for the reply. How do I know if I am trading at DMA platform or any other.       
×
×
  • Create New...