FXCM Group Launches New Index CFD 

FXCM Group, LLC, has added a new index contract for difference (CFD) to its range of trading instruments. The online trading provider has announced on Tuesday its addition of Volatility Index CFDs.

The CBOE Mini VIX™ Future is the underlying asset of Volatility Index CFDs. According to reports, CBOE launched the mini future on the 10th August 2020.

This builds Cboe’s launch of VIX futures, which is the most actively traded, exchange-listed volatility futures contract in the world.

The Volatility Index CFD allows clients to profit directly from market movements, instead of changes in stock prices. This was according to a statement from the foreign exchange and CFD broker, FXCM.

FXCM: Capitalizing on Market Volatility

Brendan Callan, CEO of FXCM said that 2020 has been a big year for volatility.  They continue to maximise trading opportunities for clients who want to make the most of this market turbulence.

With a CFD based on the VIX™, volatility is has become a tradable instrument. Their customers can speculate on the extreme movements that have dominated the markets this year.

They are making this instrument accessible to all types of traders by significantly reducing the allowable trading size.

The product uses the price of options on the S&P 500 with the ticker symbol VOLX. It estimates the volatility of those options between the current date and the option’s expiration date.

The new Index CFD expires monthly, but it can be purchased micronized VOLX CFDs. That is at 1/10th of the size of the mini VIX™ or 1/100th of the standard VIX™ Future.

Furthermore, FXCM is not the only trading provider to launch an investment product based on CBOE’s VIX Future. In July, Invast Global launched a new Index CFD product based on VIX futures contract offered by Cboe Futures Exchange.