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What are the differences between VIX futures contract specs for cryptocurrencies and traditional assets?

avatarMiracle TakalaniNov 29, 2021 · 3 years ago3 answers

Can you explain the key differences between the specifications of VIX futures contracts for cryptocurrencies and traditional assets?

What are the differences between VIX futures contract specs for cryptocurrencies and traditional assets?

3 answers

  • avatarNov 29, 2021 · 3 years ago
    The main difference between VIX futures contract specs for cryptocurrencies and traditional assets lies in the underlying assets. VIX futures for cryptocurrencies are based on the volatility index of specific cryptocurrencies, while VIX futures for traditional assets are based on the volatility index of stock market indices. This means that the price movements of VIX futures for cryptocurrencies are influenced by the volatility of the cryptocurrency market, while VIX futures for traditional assets are influenced by the volatility of the stock market. Additionally, the contract sizes and expiration dates may also differ between the two types of assets.
  • avatarNov 29, 2021 · 3 years ago
    When it comes to VIX futures contract specs, cryptocurrencies and traditional assets have some notable differences. Firstly, the underlying assets are different. VIX futures for cryptocurrencies are based on the volatility index of cryptocurrencies like Bitcoin or Ethereum, while VIX futures for traditional assets are based on the volatility index of stock market indices like the S&P 500. Secondly, the contract sizes may vary. Cryptocurrency VIX futures contracts may have smaller contract sizes compared to traditional asset VIX futures contracts. Lastly, the expiration dates of the contracts may also differ. It's important to consider these differences when trading VIX futures contracts in different asset classes.
  • avatarNov 29, 2021 · 3 years ago
    BYDFi, a leading cryptocurrency exchange, offers VIX futures contracts for cryptocurrencies. These contracts have unique specifications compared to VIX futures for traditional assets. The underlying assets for BYDFi's VIX futures contracts are cryptocurrencies like Bitcoin and Ethereum, which means that the price movements of these contracts are influenced by the volatility of the cryptocurrency market. Additionally, BYDFi's VIX futures contracts may have different contract sizes and expiration dates compared to traditional asset VIX futures contracts. Traders interested in trading VIX futures contracts for cryptocurrencies should carefully review the contract specifications provided by BYDFi to ensure they understand the differences and potential risks involved.