【CFD Featured】CFD Popular Stock No. 5 VIX Index — The "Fear Index" reflecting market participants' psychology [Naoki Okumura]
[Special Feature] Double profits with CFDs! Expert guidance on popular and staple assets
① FX traders should start CFDs too and aim for profits! CFD trading learned from the basics
② Because they are FX traders, CFDs pair perfectly! Leverage FX advantages in CFDs
③ A list of FX companies offering CFDs
④ CFD Popular Asset No.1: Crude Oil — widely watched by futures and CFD traders [Yasushi Yamanaka]
⑤ CFD Popular Asset No.2: Gold — a safe asset with intrinsic value [Ryuji Sato]
⑥ CFD Popular Asset No.3: Nikkei 225 — most familiar to Japanese investors [YEN: Kura]
※This article is a reprint/re-edit of FX攻略.com August 2020 issue. Please note that the market information in the text may differ from current market conditions.
※This project is based on information as of May 28, 2020.
Profile of the presenting specialist, Naoru Okura
Professor William Sharpe of Stanford University (Nobel Prize in Economic Sciences 1990) co-developed investment models and led the world’s first online distribution of Tokyo Stock Exchange quotes. He also founded a venture with Israel’s Mossad science advisor, commercialized AI technology, and implemented it in major airports, among numerous achievements at the intersection of finance and IT. He currently runs a financial literacy school.
Blog:https://okumura-toushi.com/
Focusing on correlations with other markets
We asked Naoru Okura, the market wizard, about the VIX index.
“In trading, you must first understand what the asset is. The VIX index stands for the Volatility Index and is known as the Fear Index. The relationship between the VIX and the stock market is that when the VIX is at a low level, stock prices rise gently; when the VIX rises sharply, stock prices fall sharply. When the VIX increases significantly, a crash can occur, hence it’s called the Fear Index.”
We also learned trading tips.
“The VIX is determined only by options participants and represents expected volatility over the next 30 days. Pinpoint timing for trades is not easy, so understanding correlations with stocks, currencies, and commodities is important.”
