Can VIX-ETFs be used as a hedge against a market crash?
Can VIX-ETFs be used as a hedge against a market crash? After the stock markets experienced a dramatic crash during the Corona crisis, many investors...
Read more[1] Long means profiting from rising prices, short from falling prices. In a short sale, e.g. a stock is borrowed and then sold in the market, expecting to be able to buy it back again later at lower prices.
[2] It is not necessarily aimed to build a “market-neutral portfolio” of “longs” and “shorts”, but every trading idea is independently viewed for its opportunities and risks. With only a few stocks on the rise in some stock market phases (such as a bear market), being able to “go short” can give more opportunities.
[3] FN3 Only financial instruments can be included in which the necessary knowledge can be acquired and price drivers can be examined and which have sufficient trading liquidity. It should also be noted that this does not constitute investment advice, as it is explicitly not addressed to the personal specific situation of the subscriber. Each subscriber may ask his investment adviser prior to his buy and sell decisions. The recommendations in our financial market newsletter merely represent an opinion of the author regarding the future development of the discussed financial instruments. The voting rankings serve only to explore the interests of the readership in order to make the stock market letter interesting.