Trading Winners and Losers As Volatility Level Hits Low
Traders Magazine, November 2004
Record lows in market volatility are driving down both buyside costs and sellside profits. The Chicago Board Options Exchange's closely watched Volatility Index, or VIX, has slid to its lowest level in eight years. The indicator, which represents the implied market volatility of a basket of widely traded options on the S&P 500 index, hit 12.75 in October. It last touched that level in 1996. That's good news for the buyside. "Trading is less pricey when you don't see wild swings," says Marie Konstance, an executive with Plexus Group. Konstance, speaking at a roundtable on block trading, said trading costs have declined steadily.
All TradersMagazine.com articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, online technology directory, the iPad App, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and trading strategies.