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Fear Index

50% per year in the fall of volatility
Stocks
High Risk

Estimated Gains
80 % annually
Min. Amount
500 $
Requests up to
17 Dec
Min. period
1 week
Entry Fee
5 %

Invest in Fear Index

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Why you should bet on VXX decline

VXX is an exchange-traded note issued by Barclays Bank PLC linked to the VIX Index that is based on S&P500 VIX Short-Term Futures™ Index created to display equity market volatility evolution using the volatility index futures (the Fear Index).

Instrument’s constituents - short-term VIX futures – are mostly in contango as a complacent market environment prevails over crisis environment. This makes VXX an instrument in a continuous decline by 50% a year on average.

VXX starts rising only if the stock market falls sharply and rapidly; other than that, it declines. The charts below exemplify how often price spikes occur.

Shorting VXX as an Investment Strategy

This approach enables avoiding losses from minor price fluctuations as well as additional fees. If VXX rises by 30%, this investment becomes high-risk and may result in a loss of the entire capital; this is why, the risk management system would close the position if losses exceed the above threshold.

Why invest with United Traders?

MARKET PRICING
Buying and selling VXX ETF takes place each Monday morning at the prevailing exchange price.
TIMING
Buying and selling is done only once a week. This way, you avoid losing money from minor price fluctuations.
INVESTOR-FRIENDLY
The minimum investment amount is only $100. You can pay with a bank card or by money transfer to a settlement account with minimum bank fees.
BUILT-IN RISK MANAGEMENT
The automatic risk management system is triggered if losses exceed 30%, which makes mandatory approval of investments by a risk manager unnecessary.
LOW ENTRY FEES
Investors have no need to request daily locates, with each locate running into at least $20 a day. Locates are required to sell equities short.
TRANSPARENCY
After you make your investment, you can track the performance in My Investments section.

How to monitor performance and when to sell?

Demo

Here’s a sample chart as seen in your personal account. It is updated on a weekly basis showing the unrealized gains or losses (Profit and Loss Statement). The respective PnL figures are shown in the upper right corner. Below the chart you can see your investment amount and its current value. By pressing the “SELL” button you will see your transaction summary. We advise against emotional responses to any possible spikes in the chart. Buy & Hold investment strategies are intended for a period of at least a month.

The investment process is extremely prompt: entry/exit orders sent anytime during the current week will be executed on Monday next week.

Animated gain chart display will be available with the next release.

Key Investment Terms and Conditions

TRANSACTION DETAILS

By signing up on the website you accept the public offer. The public offer details any and all legal matters. No individual contract or passport details required.

TERMINATION TERMS AND CONDITIONS

This investment shall be in effect until September 1 and will be closed automatically after the above date. The investment may be closed compulsorily prior to the above date if the respective losses exceed 30%.

MISCELLANEOUS

Settlements are rounded to two decimal places; therefore, the actual buy amount may be lower than you deposited. The remaining balance will be credited to your account.

Risks

United Traders is experienced in mitigating any risks, but a future investor must be aware of all the risk types:

  • Any positive performance this strategy has shown in the past does not guarantee any similar performance going forward.
  • Volatility may rise by more than 30% following extremely negative news or any force-majeure events in the stock market.
  • This instrument is offered by Barclays Bank PLC, and therefore, a counterparty risk always remains.
  • The risk management system as any technical means may be subject to errors and malfunctions; therefore, there is no 100% guarantee that losses will be kept at or below 30%.
  • Being short the VXX is a high-risk investment!

Invest in Fear Index

Please, log in or sign up to invest in Fear Index