VIX Futures

VIX Futures are financial contracts that allow investors to buy or sell the expected future value of the VIX, which measures market volatility and investor fear. Essentially, they let traders hedge against or speculate on changes in market uncertainty over a specific period. When the market expects higher volatility, VIX Futures prices tend to rise; when less, they tend to fall. These futures are used as insurance during turbulent times or to profit from changes in market stress, providing a way to manage risk linked to market fluctuations without directly trading the underlying volatility index.