Interesting facts about the VIX75 (Volatility 75 Index)
The VIX75 index is highly volatile. 75 means that the volatility of the instrument is always 75%. Therefore, experts do not recommend traders with weak technical analysis skills to trade the instrument. In addition, according to money management rules, the amount of capital must be large enough to withstand the risk associated with trading VIX75.
To calculate the required amount of funds to trade, focus on your strategy. For traders who prefer small lot sizes, such as 0.001 or 0.002, $100-$200 is optimal. To trade lots from 0.003 to 0.008, capital of $1000 and above is recommended. Full lot trading is possible when the capital is at least $100,000.
When trading VIX75, it is necessary to set protective orders due to the high volatility of the instrument. When trading small volumes, it is possible to set a stop loss and take profit at a fairly distant level. However, when trading large lots, it is worth placing them as close as possible to the trade opening level.
