The Volatility Index 75 or VIX, known as the ‘fear index’ on trading rose. This indicates that the value of market volatility or global financial market risk conditions has returned high. One indicator is the US financial market volatility index (VIX). As a measure of volatility, the VIX generally represents an indicative value of 30. If the reading of the VIX is above 30, it implies high volatility and fear that exists among investors. You can get more information at http://www.volatility75.net/. On the other hand, a value below 30 indicates investor confidence, or rather, lower volatility in the market. High market volatility has made investors reluctant to enter the market for risky assets or assets with yields.
On the government bond market, the yield on 10-year debt securities on trading rose 0.22% or 1.60 basis points (bps) to 7.294%, 100 bps equivalent to 1%. The increase in yield shows the price of this instrument is going down. Meanwhile, the exchange rate in yesterday’s trading also weakened 0.22% from the previous closing. Therefore, in the last few days, global financial markets, have been quite volatile, from the stock market to the capital market due to relatively high market volatility. The main focus of investors remains on developments from the coronavirus pandemic. This situation can affect the psychology of investors. Foreign capital flows are reluctant to enter as long as data and perceptions have not improved. The spike in cases exposed to the coronavirus in the last two days with the addition of new infections to a record high daily additions of cases has discouraged investors.
Apply proper risk management such as using a reasonable risk to reward ratio to set your Stop Loss and Take Profit. It’s that simple and that, and you’re already making money trading VIX Exchange-Traded Products. The safest thing to do is to make sure that you properly employ a money management system. That way even if you lose a few products here and there, you will remain stable and can continue trading. This will allow you to not only cover your losses but also gain more and more from recovery.