OptionsDesk broker Simon Hanouka speaks to Thomas Warner from Proactive about what the launch by Cboe of a 1-day Volatility Index (Vix) means for the markets.
Hanouka describes it as a "condensed version of the regular Vix" that will affect risk management strategies and allow traders to track short-term swings in the markets more effectively.
He suggests the 1-day Vix is "quite an interesting index" that will "open many doors for other one-day options."