- A futures product is a financial derivatives contract obliging the buyer to purchase the contract or the seller to sell the contract at a predetermined future date and price.
- S&P/ASX 200 VIX futures can be used either to hedge or to speculate on movement in the S&P/ASX 200 VIX based on whether the investor expects high or low levels of volatility.
- They can be used to exploit the negative correlation between S&P/ASX 200 VIX and the S&P/ASX 200 to hedge equity portfolios.
- Enable investors to diversify their portfolios by adding volatility as an asset class, with a low or negative correlation to other asset classes including the AUD/USD exchange rate.
- Allows users to take advantage of pricing differentials between other volatility indices and the term structure of volatility.
ASX Launches Futures Product For Trading Equity Market Volatility
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