Even before early February's market turmoil, Fidelity, which temporarily blocked
the inverse volatility products after their freefall, required customers to sign an agreement that calls out the risks of volatility and leveraged products, a spokeswoman said.
Not exact matches
The standard response to the collapse — and in some cases, the liquidation — of
inverse volatility exchange - traded
products has been, «Why the heck do we need these things?»
For anyone holding an electronically traded
product (ETP) tracking the
inverse of the VIX index, the end of the low
volatility regime that was 2017 obliterated their allocated positions.
There are also
inverse and derivative - based
products that can provide investors exposure to vehicles such as the CBOE
Volatility Index (VIX), letting investors «customize their hedge,» Mordy says.