How To Buy Vix On Ameritrade? The VIX Sept 21 call is trading at $4.10 (or $410 per contract, which is also your maximum risk). Fast-forward 49 days. Your market scenario turns out to be correct,.
VIX, or the CBOE Volatility Index, is a popular measure of volatility of the US stock market. It is traded on the Chicago Board Options Exchange (CBOE), and is used by many investors to hedge risk or speculate on market volatility. If you’re looking to buy VIX on Ameritrade, here’s what you need to know.
First, it’s important to note that VIX is a futures contract, not a stock. This means that you cannot buy it on Ameritrade like you would buy a stock. Instead, you must use a futures trading platform. Ameritrade offers a futures trading platform, but you must be an approved futures customer in order to use it.
If you are approved, then the process of buying VIX on Ameritrade is relatively straightforward. Here’s a step-by-step guide:
- Log onto your Ameritrade account and select the Futures tab. This will take you to the futures trading platform.
- Search for VIX in the Contract Search box and select the VIX futures contract you would like to trade.
- Select whether you would like to buy or sell the VIX contract, and enter the amount of contracts you would like to trade.
- Check the order details to make sure everything is correct, and then submit the order.
- The order should be filled shortly afterwards, and your position in VIX will be reflected in your account.
It’s important to understand the risks associated with trading VIX. VIX is a highly volatile instrument, and prices can move quickly and erratically. As such, it is important to understand the risks before trading, and to manage your risk carefully while trading. Additionally, because VIX is a futures contract, there is the potential to incur significant losses if the market moves against you.
In conclusion, buying VIX on Ameritrade is relatively straightforward. However, it is important to understand the risks associated with trading VIX, and to manage your risk carefully. If you are an approved futures customer on Ameritrade, then you can follow the steps above to buy VIX.
What is the VIX | Trading Options Course
Options involve risks and are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Please read Characteristics and Risks of Standardized Options ( optionsclearing.com/about/publications/character-risks.jsp) before investing. One factor that impacts how market makers price options is volatility. This video, explores the CBOE Volatility Index known…