Lets see if I get this right , no pun intended as money is money .
The vix is measure of volatility of at the money options on the s&p500 in a 30 day period where movement is dictated or hedged by a futures contract and underlying oppies which are based on futures pricing .
So they then make a futures contract on the VIX which can also move the price but that has no impact on the measure of volatility of the oppies [vix]or the amount taken so what becomes irrelevant .
So they [banksters ]then create an ETF/ETN style instrument both up and down or long and inverse or is it up and down with huge leverage which has no impact on the futures of VIX or the amount of oppies on the sp500 taken or sold or even the value of the s&p500 .
So then some smart bunny creates a CFD on the ETF/ETN and we all know cfd's are banned in the USA . So we now have a cfd on a ETN which is influenced by futures on the VIX which is a measure of volatility of oppies on the s&p500 .
Oh dear ,I thunk I got it , no wonder the volume of the s&p500 index has lower volume than previous history as no one buys stocks anymore as that is now left to the robots . Everyone just buys a synthetic instrument from beloved banksters who have a history of creating things out of thin air so they can take cash from the unwary . The last time this happened it was called a GFC .
So then we read the fine print from here ; http://www.velocitysharesetns.com/xiv
[The ETNs do not guarantee any return of principal at maturity and do not pay any interest during their term.
Although we intend to list the ETNs on NYSE Arca, a trading market for your ETNs may not develop. We are not required to maintain any listing of the ETNs on NYSE Arca or any other exchange.]
Now I am really confused .lol
The above is just my simple view and I'm probably wrong on how much of it works . Vix being a new measure in comparison to the old Vix or Vox and everyone hated it when it was introduced but now it don't matter as the banksters aren't there to lose or not until it all unravels . The problem is next time, and there will be a next time, when financials implode the Reserve banks of the world won't have sufficient cash to do a temporary fix as they are to busy fighting un winnable wars .
