US Oil and the VIX (Volatility Index) are so-called “Future” products. This means that they expire after a certain period, which for both of them is one month.
What happens when the product expires?
When the product expires, your position will be automatically closed. However, to make sure you can trade US Oil and the VIX on a continuous basis, we make sure that the new product is always available roughly one week before the one of the current month expires.
So, how do I trade US Oil and the VIX?
Up to you. You can keep the current product until it expires while opening a new position in the new product, or close your current position and open a new one with the new future product.
To make it clear for you (so you know which future you are looking at), we've added the expiration date to the product name.
Is there a specific expiration time?
Yes, for US Oil it is 19:00 GMT (unless we are dealing with a daylight savings time difference in the US). For the VIX this is 20:45 GMT. Both products are closed at the Settlement price on the expiration day or on the first working day after the expiration day if this one falls during the weekend.
What about the fees?
When you open the product from the Market screen or from your Portfolio, you will see a full overview of what fees you will pay - or are paying - when buying, holding and closing a position in US Oil or the VIX.
As with other products, the minimum fee for opening and closing your position will be £0,25 and is dependent on the total value of your trade.
One cool thing about US Oil and the VIX is that you pay no financing fee when you use the Multiplier for this product.
Questions? Feedback? Reach out to us at BUX X Support.