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Why S&P 500 Variance Futures May Be Hard to Trade

Article Quant Q&A · Author: user26085
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Summary

The document addresses whether a trader can access S&P 500 Variance Futures on the CBOE Futures Exchange and explains why choosing a broker may not solve the problem. Its central point is that the contract was described as inactive, with little or no trading on most days. In that situation, the limiting factor is market liquidity rather than simply broker access.

The answer contrasts the variance contract with other CFE products, citing VIX futures as an example of a more actively traded contract available through a broker such as Interactive Brokers. The discussion is brief and offers no trading strategy, volume data, or current market check. Its description of inactivity and possible delisting is a dated assessment, so traders should verify present contract status and activity before making access decisions.

Key ideas

  • Low trading activity can make a listed futures contract difficult to trade regardless of broker access.
  • The document describes S&P 500 Variance Futures as largely inactive.
  • It contrasts the variance contract with more active CFE products such as VIX futures.
  • The comment about possible delisting is speculation rather than confirmed status.

Tags

FuturesVolatilityMarket microstructure
Full text
# Variance Futures Trading


# Variance Futures Trading












Maybe you can help me with the question about trading on CFE.

With which broker can I trade S&P 500 Variance Futures (VA)?

## Answer by nbbo2 (score 2)

https://quant.stackexchange.com/a/31882

The market for Variance futures on the CBOE Futures Exchange is unfortunately inactive, there is not much trading if any on most days. (Probably they will be delisted soon?). Some other CFE futures contract (such as VIX) are very active and can be traded for example on Interactive Brokers. The broker is not the issue, it is just that the VA contract is a failure so far.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.