Wednesday, February 26, 2014

India VIX Future Trading

Volatility Index is a measure of market’s expectation of volatility over the near term.
India VIX is a volatility index based on the NIFTY Index Option prices. From the best bid-ask prices of NIFTY Options contracts, a volatility figure (%) is calculated which indicates the expected market volatility over the next 30 calendar days. India VIX uses the computation methodology of CBOE, with suitable amendments to adapt to the NIFTY options order book using cubic splines, etc.

Recently NSE  Starting trading in India vix
Though its costly,Not meant for retail investors: The contract value would be minimum Rs. 10 lakh, so is unlikely to be evoke interest from retail investors.

Lets see the India VIX chart.
India VIX Future Trading
From the chart we can see
the vix is forming
abcde and is in ending stage.
It should bottom near 12
and then head towards
16.
Above 16 it would be a
breakout and it can
travel much above
so as of now first hurdle


in rise would be 16.

Regards
Rish


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