Are there any VIX-tracking products that one could invest in for the longer term (2-3 months)?
There are products available, but has anyone found sensible ones that track VIX as closely as possible and are suitable for longer-term investment?
Nordnetâs Turbos and other warrants are very expensive for long-term hedging. The financing element in these is very costly. In a situation where you hold the product for, say, a year, and the prices are the same at the end, you would have lost a lot of money.
As a cheap alternative, I have only found one product from Nordnet. Nordnetâs credit customers can sell or buy the Swedish index, which is settled daily. The costs are small in proportion.
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Letâs ask some silly questions for a change. If I bought a BULL VIX X2 V1 certificate from Nordnet this morning, could someone shed some light on how its value change is calculated? VIX is showing a +18.50% increase, and the certificate, which should have a 2X leverage, is showing a +8.70% value change. It seems to me that the leverage should go in the other direction..
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