UVIX--
UVXY--
VXX--

$VIX $UVIX $VXX Understanding the connection betwe

$VIX $UVIX $VXX Understanding the connection between these is key. VIX is based on the spot market, while $VXX, $UVXY, and $UVIX are tied to VIX futures. The difference is crucial. Products linked to VIX futures, like $UVXY and $UVIX, lose value quickly over time. For example, UVXY typically drops by 50% every 3-4 months and 75-85% yearly. UVIX decays even faster. In contrast, VIX tends to bounce back to its average range of 17-19 over the long term. Due to the rapid decay of VIX futures products, going long on them is similar to gambling. They're not great hedges, and investing in these can lead to significant financial losses.

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