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Equity index futures

What is the CME Volatility Index (VIX Futures) and how do I trade it to hedge equity positions?

By Easy Money Scanner · Educational reference · Not investment advice

The short answer

Cboe VIX futures let traders speculate on or hedge expected S&P 500 volatility, based on the Cboe Volatility Index rather than CME.

How it works

VIX futures trade on Cboe Futures Exchange and typically rise when equity markets fall sharply, useful for portfolio hedging strategies.

An example

Long VIX futures positions can offset losses during equity market sell-offs.

Risk & limitations

VIX futures often trade at a persistent premium to spot VIX via contango.

Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.

Sources & further reading