Table of contents
- Important note
- What are VIX futures?
- VIX, VX and VXM explained
- Broker and tools
- Contract specifications
- Why VIX futures are different
- Term structure
- When is VIX interesting?
- Strategies
- Liquidity: VX vs VXM
- Common mistakes
- Who is VIX futures suited for?
- Brokers for VIX futures
- Glossary
- Sources
- Conclusion
- FAQ
Quick summaryWhat you should know about VIX futures
- VIX isn't directly tradable. Spot VIX is a calculated index. What you trade are derivatives such as VX, VXM, VIX options or ETPs.
- VX is the main market. Standard VIX futures has far better liquidity than Mini VIX futures, but also a significantly larger dollar value.
- Term structure drives much of the risk. Contango can eat away at long VIX positions, while backwardation often appears during periods of stress.
- VIX is mean reverting. Volatility can spike quickly, but has historically tended to fall back toward more normal levels.
- VIX suits experienced traders best. For many European traders, VIX is primarily useful as a market filter for ES, NQ and other index futures.
Important note
Best Futures is not an investment adviser, brokerage, tax adviser or financial adviser. This guide is written as an educational overview of VIX futures for European traders.
Futures trading carries a high level of risk. VIX futures are complicated products, and losses can exceed deposited capital. You should understand contract specifications, term structure, settlement, liquidity and position size before trading.
What are VIX futures?
VIX futures are standardised futures contracts that trade on the Cboe Futures Exchange. They don't track the S&P 500 directly, but the market's expectation for future volatility in the S&P 500.
VIX is often called the fear index because it typically rises when the stock market falls sharply. When investors buy protection through S&P 500 options, that often lifts implied volatility and, with it, the VIX index.
The key distinction is that spot VIX isn't a product you buy and sell directly. Spot VIX is a calculated index. VIX futures are contracts with their own price, their own expiry date, their own settlement and their own liquidity.
VIX, VX and VXM explained
The VIX complex consists of several instruments. They sound similar, but they don't behave the same way.
| Product | What it is | Directly tradable? | Practical note |
|---|---|---|---|
| VIX spot | Calculated index for expected 30-day volatility in the S&P 500 | No | Used as a risk gauge and reference |
| VX futures | Standard VIX futures | Yes | The main market with the best liquidity |
| VXM futures | Mini VIX futures | Yes | 1/10 of VX, but clearly lower liquidity |
| VIX options | Options linked to the VIX complex | Yes | More options-driven and advanced |
| VIX ETPs | Exchange-listed products that typically use VIX futures | Yes | Carry their own roll and structural costs |
When you trade VIX futures, you aren't trading fear right now. You're trading the market's expectation for VIX on a specific future date.
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The two most relevant contracts for European traders are the standard contract VX and Mini VIX futures, VXM.
| Parameter | VX futures | VXM futures |
|---|---|---|
| Name | Cboe Volatility Index Futures | Mini Cboe Volatility Index Futures |
| Symbol | VX | VXM |
| Exchange | Cboe Futures Exchange | Cboe Futures Exchange |
| Contract size | $1,000 x VIX level | $100 x VIX level |
| Size vs VX | 1x | 1/10 of VX |
| Minimum tick | 0.05 VIX points | 0.01 VIX points |
| Tick value | $50 | $1 |
| Settlement | Cash | Cash |
| Underlying | VIX Index | VIX Index |
| Best suited for | Experienced and professional traders | Smaller positions and learning |
At VIX 20, one VX contract has a notional value of $20,000. One VXM contract then has a notional value of $2,000. If the market moves five VIX points, that equals $5,000 per VX contract and $500 per VXM contract.
Why VIX futures are different from other futures
When you trade ES, NQ, YM or RTY, you're effectively trading the direction of a stock index. VIX futures trade expected volatility. That means the price is influenced by the options market, hedging needs, market fear, expiry and term structure.
VIX can fall even if the market falls
A controlled, expected stock decline isn't necessarily VIX-bullish. VIX doesn't just measure direction, but expected uncertainty. A sudden, broad and unexpected wave of selling is normally far more VIX-driving.
VIX can also rise before the stock market falls sharply, for example when the options market prices in higher risk ahead of CPI, FOMC, elections, geopolitics or major corporate earnings.
Another important difference is mean reversion. Volatility can spike extremely fast, but has historically tended to revert toward more normal levels. That makes long VIX positions demanding to hold for long.
Term structure: contango and backwardation
Term structure is perhaps the most important concept in VIX futures. It shows the price of VIX futures at different expiry dates. The curve tells you how the market is pricing future volatility.
Contango
Contango means the nearest VIX futures contracts trade lower than contracts further out in time. This is often the normal state in calm markets.
For long VIX positions, contango can be negative. If you hold the position and have to roll forward, you may have to buy a more expensive contract. Over time this can erode value.
Backwardation
Backwardation means the front contract trades higher than contracts further out in time. This often occurs during periods of stress when the market is pricing in acute fear now, but expects normalisation later.
Backwardation can be positive for traders already long VIX, but dangerous for traders who enter late after the fear has already been priced in.
When are VIX futures interesting to trade?
VIX futures aren't necessarily a market you should trade every day. It's most relevant when you have a clear volatility thesis.
Strategies for VIX futures in 2026
Long VIX at low volatility with a clear catalyst
This is a strategy where the trader buys VX or VXM when VIX is low, but there's a specific event that could trigger higher volatility. Examples include CPI, FOMC, geopolitical risk, credit stress or major technology earnings.
This shouldn't be a random the-market-must-fall-soon trade. There needs to be a clear reason why volatility could reprice.
Short VIX after a panic spike
This is a classic mean reversion strategy. When VIX has risen sharply and the market begins to stabilise, some traders may consider shorting VX or VXM.
The strategy is advanced. Short VIX can be very dangerous because volatility can rise much faster than it falls.
Calendar spreads
Calendar spreads trade the difference between two VIX futures contracts with different expiries. This is more professional than simply buying or selling the front contract.
| Spread | Possible interpretation |
|---|---|
| Long front-month / short back-month | Expects acute stress and a steeper front |
| Short front-month / long back-month | Expects normalisation and contango |
| Long mid-contract / short front | Expects acute fear to fade but uncertainty to persist |
VIX as a filter for index futures
For many traders, VIX is most useful as a filter, not as the main instrument. If you trade ES or NQ, VIX can give important context on risk regime, pace and the probability of false breakouts.
| VIX signal | Possible interpretation |
|---|---|
| VIX rises while ES falls | Risk-off is confirmed |
| VIX falls while ES falls | The decline may be more controlled |
| VIX breaks up from a low level | The market is pricing more uncertainty |
| VIX falls after news | Fear is being priced out |
| Term structure moves into backwardation | Stress regime |
Liquidity: VX vs VXM
Liquidity is one of the most important factors in VIX futures. The standard contract VX is the main market and is used by professional participants, market makers and institutional volatility traders.
VXM is smaller and more accessible in size, but volume is normally far lower. That doesn't mean VXM is unusable, but spread, order type and timing become more important.
| Factor | VX | VXM |
|---|---|---|
| Volume | Higher | Lower |
| Spread | Normally better | Can be wider |
| Institutional use | Yes | Less |
| Retail-friendliness | Lower due to size | Better due to size |
| Suited to scaling | Yes | More limited |
| Suited to learning | Demanding | Better, but with liquidity risk |
Cboe states that Mini VIX futures trade separately from standard VIX futures, and that prices and quotes can diverge partly due to differences in liquidity.
Common mistakes in VIX futures
- Believing spot VIX and VX are the same thing. Spot VIX can sit at one level while front-month VX is priced differently due to expiry and term structure.
- Buying VIX and just waiting. VIX futures aren't suited to classic buy-and-hold. Roll effect and mean reversion can work against you.
- Ignoring contango. Long VIX in a calm, contango market can lose money even if the stock market doesn't rise much.
- Shorting VIX without a disaster plan. Short VIX can work for a long time, right up until one stress event produces large losses.
- Using market orders. VXM can be thinner, and spread can widen quickly. Limit orders are often more sensible.
- Using too large a size. A move of five VIX points is $5,000 per VX contract.
Who is VIX futures suited for?
VIX futures suit traders who already understand futures, options, volatility and macro. For completely new futures traders, micro index futures like MES or MNQ are normally a more educational starting point.
| Trader type | Suited to VIX futures? | Comment |
|---|---|---|
| Completely new futures trader | Generally no | Start with theory, simulation and micro index futures instead |
| Active index trader | Yes, as a filter | VIX can give good market context |
| Experienced futures trader | Yes | VXM can be a first practical step |
| Options trader | Yes | More natural understanding of volatility |
| Long-term investor | Only as a hedge | Not suited as buy-and-hold |
| Professional vol trader | Yes | VX is the main contract |
Brokers for VIX futures
VIX futures trade on the Cboe Futures Exchange, not CME. You should therefore always check CFE access, market data, margin, order types and product access with the broker before opening an account or depositing capital.
| Broker | Best for | Comment |
|---|---|---|
| EdgeClear | Active futures traders | Futures-focused setup. Check CFE access for VX/VXM before opening an account. |
| NinjaTrader | Platform users | Relevant for traders who already use NinjaTrader. Check product access and data subscription. |
| Saxo Bank | Multi-asset and a broad user experience | Wide platform. Check available Cboe futures products and eligibility. |
| StoneX | Professional and institutional traders | Strong clearing and futures infrastructure. |
| AMP Futures | Retail futures | Low minimum and many platforms. Check CFE, margin and real-time data. |
Our pick
EdgeClear — CME access, micro contracts and low commissions for European futures traders.
Glossary
| Term | Explanation |
|---|---|
| VIX | Cboe Volatility Index, often called the fear index. |
| VX | Standard VIX futures contract. |
| VXM | Mini VIX futures, 1/10 of VX. |
| Contango | When later VIX futures are priced higher than the front contract. |
| Backwardation | When the front contract is priced higher than later contracts. |
| Term structure | The curve of VIX futures prices across different expiries. |
| SOQ | Special Opening Quotation, used at settlement. |
| VRO | Settlement value for VIX derivatives. |
| Mean reversion | The tendency to revert toward a normal level. |
| Long volatility | A position that profits from rising volatility. |
| Short volatility | A position that profits from falling or stable volatility. |
Sources and further reading
- Cboe: VIX futures
- Cboe: VIX futures contract specifications
- Cboe: VIX fact sheet
- Cboe: Mini VIX futures
- Cboe: Mini VIX futures fact sheet
Conclusion: VIX futures are useful, but demanding
VIX futures are one of the most interesting, but also one of the most misunderstood instruments in the futures market. It's a real market for volatility, but it doesn't behave like the S&P 500, Nasdaq or gold.
The standard contract VX has the best liquidity and is used by professional participants for hedging, speculation, risk management and volatility trading. The mini contract VXM makes the market more accessible in size, but has weaker liquidity.
For many European traders, the best use of VIX is to start as a market filter. Use VIX, term structure and VIX moves to understand the risk regime in ES, NQ and other index futures. Direct trading in VX or VXM should only be considered once you understand term structure, roll effect, settlement, and the difference between spot VIX and the futures price.
Capital risk: Futures trading carries a high level of risk and is not suitable for everyone. Losses can exceed deposited capital. VIX futures are complicated products and should only be traded by traders who understand the product's risk, term structure and settlement mechanism.
Ready to trade VIX futures?
Active futures traders who want low commissions, a professional platform, and direct CME access.
Frequently asked questions about VIX futures
Short answers to questions European traders often have before considering VX or VXM.
VIX futures are exchange-listed futures contracts on the Cboe Futures Exchange that reflect the market's expectation for the future level of the VIX. They give exposure to expected volatility in the S&P 500, not directly to the stock index.
No. Spot VIX is a calculated index, not a directly tradable asset. What you can trade includes VIX futures, VIX options and certain exchange-listed products built on VIX futures.
VX is the standard VIX futures contract with a multiplier of $1,000. VXM is Mini VIX futures with a multiplier of $100, a tenth of the standard contract.
The standard contract VX is the main market and normally has far better liquidity than VXM. The mini contract is smaller in size, but should be traded more cautiously because volume and spread can be weaker.
For VX, the minimum tick is normally 0.05 VIX points, equal to $50. For VXM, the minimum tick is 0.01 VIX points, equal to $1 per contract.
Many lose because they buy VIX too early, hold the position too long, or ignore contango and the roll effect. VIX can stay low for a long time before it suddenly spikes.
As a general rule, no. VIX futures are more complicated than ordinary index futures. New traders should first use VIX as a market indicator before eventually testing VXM with small size.
Yes, VIX futures can be used as a hedge against a stock market decline, but it isn't a perfect hedge. Size, timing, expiry and term structure determine whether the hedge actually works.
Contango means later VIX futures contracts are priced higher than the front contract. This is common in calm markets and can make long VIX positions expensive to hold over time.
Backwardation means the front contract is priced higher than later contracts. It often occurs during periods of stress when the market is pricing in acute fear.