VIX is the Chicago Board Options Exchange Volatility Index, it is a market index linked to expected stock market volatility over the next 30 days. When the VIX rises, it’s expected that volatility will rise and stock market prices will fluctuate more quickly and sharply. The VIX market is traded based on where the VIX itself is headed, which can done by buying and selling futures contracts linked to the VIX or exchange-traded VIX products through a broker.

The VIX is a measurement of the U.S. stock market’s expected volatility over the next 30 days. It’s administered by the company CBOE Global Markets based on the pricing of various call and put options related to the S&P 500 index.

Call options allow someone to buy a stock or another asset at a certain price, called the strike price, at a certain time.
Put options allow you to sell the stock or asset at the strike price at a certain time. Call options, which take their name from calling for delivery of the asset, go up in value when it’s more likely or expected that the asset price will exceed the strike price, since they’ll let you buy the stock at a bargain price. Conversely, put options go up in value when it’s more likely that the asset price will be less than the strike price, since whoever holds the options will be able to sell the asset for more than it’s otherwise worth.

HOW TO MAKE MONEY TRADING VIX

Trading volatility indices can be highly profitable and can be very risky, thereby causing you to blow up your account, if you must trade VIX, you must approach it from the right perspective.

Here’s are things you need to put unto consideration if you must succeed trading binary options.

1. VIX knowledge
2. Good training strategy
3. Discipline

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