The VXX ETN is based on the VIX—the Chicago Board Options Exchange Volatility Index. The VIX reflects investors' expectations about the short-term direction of the S&P 500 by assessing current prices for put and call options tied to the widely followed index.<\/span> The VIX produces an educated guess about how much the index is likely to move over the next 30 days. Traders who want to profit from bets on volatility in the market might invest in the VXX.<\/span><\/p>"
}
}
,
{
"@type": "Question",
"name": "What Does It Mean When the VIX Is High?",
"acceptedAnswer": {
"@type": "Answer",
"text": " The VIX, or the volatility index, measures volatility in the stock market. When the VIX is high, it means that volatility is high. High market volatility is usually accompanied by market fear.<\/span><\/p>"
}
}
,
{
"@type": "Question",
"name": "Are ETFs Good for Day Trading?",
"acceptedAnswer": {
"@type": "Answer",
"text": " Exchange traded funds (ETFs) have emerged as another instrument of choice for day trading<\/a>. ETFs offer the diversification of a mutual fund, the high liquidity and real-time trading of a stock, and low transaction costs.<\/span><\/p>"
}
}
,
{
"@type": "Question",
"name": "How Long Does an ETF Trade Take To Settle?",
"acceptedAnswer": {
"@type": "Answer",
"text": " An ETF trade typically takes two business days to settle (trade date plus two business days).<\/span><\/p>"
}
}
]
} ] }
]