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Volatility Index Derivatives

Volatility Index Derivatives

VSTOXX Advanced Services

A service brought to you by Eurex Exchange

The VSTOXX® is a major index measuring market participants’ sentiment of short-term volatility in Europe. With VSTOXX Advanced Services you’ll get all the information and tools required for smart and advanced volatility trading.

Futures and options on the VSTOXX® give investors a targeted and leveraged means to take a view on European volatility, based on the implied volatility derived from EURO STOXX 50® Index Options. Portfolio diversification and optimizing volatility exposure are amongst the strongest reasons to access volatility via VSTOXX® derivatives.

As exchange-traded and centrally cleared derivative products, Eurex volatility index derivatives offer added benefits compared their OTC relatives in terms of independent mark-to-market valuation and substantially reduced counterparty risk due to Eurex Clearing acting as the central counterparty.

The Mechanics of the VSTOXX® Index

Discover the VSTOXX® index fomula outlined with sample calculations on pages 20 ff. of the STOXX® Strategy Index Guide.

Interview "How to benefit from Eurex volatility products"

We spoke to Arnaud Poix, Head of Index Trading for Europe, at Société Générale, on the opportunities of Eurex VSTOXX® products offer.

What volatility trading can do for you

Trading volatility as an asset class in itself enables you to:

  • Diversify your portfolio by adding a new asset class
  • Hedge your portfolio exposure, especially as a disaster hedge
  • Set up trading strategies on anticipated volatility levels
  • Explore spreads between European and non-European volatility indices

How does the VSTOXX® index work?

The VSTOXX® volatility index expresses the fluctuation range expected by the market, that is the implied volatility of the EURO STOXX 50® index. The VSTOXX® indicates in percentage points which volatility is to be expected for the EURO STOXX 50® index over the coming 30 days. The basis of calculation for this index is a basket of EURO STOXX 50® index options quoted at the money or out the money.

New factsheet on VSTOXX® derivatives

Take advantage of European volatility with futures and options on the VSTOXX®, the European benchmark for equity volatility. Our new factsheet tells you how.

Further Information

Rex Jones

Eurex Frankfurt AG
Product Development

Mergenthalerallee 61
65760 Eschborn

T +49-69-211-1 78 06

Markus-Alexander Flesch

Eurex Zürich AG
Sales

Löwenstraße 3
8021 Zürich

T +41-43-430-71 21

Megan Morgan

Eurex, Chicago Representative Office | Sell Side
Sales

233 South Wacker Drive, Suite 2450
Chicago, IL 60606

T +1-312-544-10 83

 

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