jongo, I currently have a small cfd holding of VIXY and have, as posted, an interest in the SPXU mainly due to the fact that I can get a 5% margin. All others seem to be 10%.
These are extremely complex etfs but as both are near zero it is a very interesting situation. The present levels of both have come off historic lows VIXY ~18 and SPXU ~45. As the indices they reflect have a theoretical unlimited range: these etfs do not.
Therefore I look at the safety aspect. But as both move in the same direction for much the same reason I haven't worked out yet the advantage of owning both. When the VIX moves up (volatility increases) US markets decline.
So as there seems much the muchness the margin is a factor. Perhaps the important strategy for the moment is to buy one when you think the market is due to roll over. I bought the vix at 22.17 and will happily add to that as things quieten down.
There are problems with some of these funds as there is a diminishing point of return. I understood it a while back but due to the positioning of the values thought the risk was minimal. Still do.
I'm happy you bought this up and would be happy to talk further. The more you know the greater the chances of making a dollar.
