Fear Index

This indicator reflects traders' expectations of the S&P 500 broad market index for the next 30 days, or rather its implied volatility.

Fear Index

Earn on non-standard index

Medium risk

Indexes

Revenue forecast:90% per annum

Min. amount6000€

Applications until:1.09.2020

Entrance fees:6%

Indexes

What is a Fear Index and why is it worth investing

  • Fear Index or in other words “fear Index” is the index, which reflects traders ' expectations for the index of wide market S&P 500 for the next 30 days. However, the Fear Index cannot be bought or sold just like that, that is why its implementation has created a special financial instrument VXX.
  • VXX is an exchange traded note, which was issued by Barclays Bank PLC. Note tied to the VIX, based on the short term futures of The S&P 500 VIX Short-Term Futures™ Index.
  • The index was created to display the dynamics of the volatility of the securities market on futures on the Fear Index.
  • The basic components of this tool are short-term futures on the VIX, which often are in a state of contango, as the steady state of the market prevails over the crisis. Because of this, VXX is constantly falling and high-risk instrument.
 

The principle of investing in the short VXX

 

Strategy Buy & Hold

Involves selling (short) shares of VXX and their medium-term retention based on a significant drop in prices. At the core of the algorithm incorporated the standard that the global long-term trend in such instruments like the VXX is always falling.

Approach to investing

The use of Buy & Hold strategies is rational, so there is no risk to lose money on small fluctuations and additional fees.

Investment growth

With the growth in 70% of investment is sverhestestvennoe, so you can lose your entire invested capital and incurring debt. In order to avoid system risk management will close the position if a minus starts to exceed this figure.

Bonuses investing with FXspace

The price fixed by market

Buying/selling of ETF VXX happens every Monday morning at the current price on the stock exchange.

Time frame

Purchase/sale is possible once a week, due to what you are going to lose money on small fluctuations.

Practicality

To Deposit (or withdraw) funds to a Personal account with a Bank card or a Bank account with minimum Bank charges.

Risk management

If the damages exceed 70%, it switches to the automatic system of risk management that allows the investor to worry less about complete loss of capital.

The minimum fee to enter

For sale stock no coating required locate, however, when investing in an idea from FXspace the investor is exempt from their daily order.

Open system collaboration

The investor can monitor any changes in the net profit in the Personal account.

How to track changes in profit

 
The details of the transaction

The details of the transaction

You can track any changes of profit in the Personal account via smartphone or laptop. Profit graph is updated in real time, so you will be able to complete the transaction at any time.

 
Other conditions

Other conditions

Below the chart shows the amount of the Deposit is invested, the current state of investments and the report on the transaction. In addition, the investment idea in the fall of volatility for long-term period. But FXspace does not limit the time, so you can close the deal at any moment.

 
Termination conditions

Termination conditions

Investing procedure takes place in several stages: applying for the entrance/exit, and the next week on Tuesday it is performed.

Possible risks

The company FXspace is interested in minimization of risks for investors, so it is worth considering that:

  • The markets are volatile, so using the same strategy from year to year does not guarantee identical profitability in the new year.
  • The output of negative news or suits in equity markets may lead to increased volatility, which will comprise more than 70%.
  • Instrument issued by Barclays Bank PLC, therefore, there is always counterparty risk.
  • The system of risk management are prone to failure and mistakes, so we can't give a full guarantee limit losses by 70%.
  • Any investment in the short VXX involves high risks.

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