Quick answer: VIX futures are cash-settled contracts on the Cboe Volatility Index, listed on Cboe Futures Exchange (CFE), not CME. One VX contract is $1,000 × the VIX futures price (minimum tick 0.05 = $50); the Mini VIX (VXM) is $100 × the price (tick 0.01 = $1.00). They settle to a special opening quotation of the VIX on the Wednesday 30 days before the third Friday of the following month. When futures sit above spot VIX (contango), long positions lose value as prices converge to spot; when they sit below it (backwardation, usually in sell-offs), the roll favours longs. Topstep's permitted-products list covers CME Group futures only, so check any prop firm's list before assuming VIX futures are allowed.
VIX futures are the most misunderstood futures contracts in retail trading. Many beginners discover them after a market crash, watch the VIX spike, and assume they should "buy VIX" to hedge. The reasons that usually loses money have nothing to do with bad timing — they're baked into how VIX futures are designed. This guide explains the mechanics so you understand whether (and how) to trade them.
What Is the VIX?
The Cboe Volatility Index (VIX) measures constant 30-day expected volatility of the U.S. stock market, derived from real-time prices of S&P 500 (SPX) call and put options. When traders pay more for S&P 500 options (typically when they're worried about a crash), implied volatility rises and VIX rises. When complacency dominates, VIX falls. Our guide to options on ES and NQ futures explains implied volatility and vega, the option Greek that tracks it.
Important: VIX is a calculated index, not a tradeable instrument. You cannot buy or sell spot VIX directly. You can only trade derivatives of it: VIX futures, VIX options, and VIX-tracking ETFs/ETNs (VIXY, VXX, UVXY, SVIX). If futures themselves are new to you, start with what a futures contract is.
VIX historical extremes
According to Cboe's VIX history, the index's highest close was 82.69 on March 16, 2020, and its intraday record was 89.53 on October 24, 2008. Readings like that come in crashes, and they don't last.
VIX Futures Contract Specs (VX and VXM)
| Specification | VIX futures (VX) | Mini VIX futures (VXM) |
|---|---|---|
| Exchange | Cboe Futures Exchange (CFE) | Cboe Futures Exchange (CFE) |
| Underlying | Cboe Volatility Index (VIX) | Cboe Volatility Index (VIX) |
| Contract size | $1,000 × VIX futures price | $100 × VIX futures price |
| Minimum tick | 0.05 = $50 (spreads 0.01 = $10) | 0.01 = $1.00 (since October 2, 2022) |
| Final settlement date | Wednesday 30 days before the 3rd Friday of the following month (prior business day if a holiday) | Same as VX |
| Settlement | Cash, to the Special Opening Quotation (SOQ) of the VIX | Same as VX |
| Last trade (expiring contract) | 8:00 a.m. CT on the final settlement date | Same as VX |
| Trading hours | 5:00 p.m. (prior day) to 4:00 p.m. CT, Monday–Friday sessions; regular session 8:30 a.m.–3:00 p.m. CT | Same as VX |
| Listed since | March 26, 2004 | August 10, 2020 |
| Margin | Set by the exchange and your broker | Set by the exchange and your broker |
Each 1-point move in the VIX futures price = $1,000 P&L per VX contract ($100 per VXM). VX moving from 18 to 19 = $1,000 win on long, $1,000 loss on short. During volatility spikes, 5-point moves in a single session can happen, creating $5,000 P&L per VX contract.
VIX Contango and Backwardation
Contango and backwardation describe where VIX futures trade relative to spot VIX. The key mechanic: a VIX future converges to the VIX's settlement value by expiration.
Contango (futures above spot)
Front-month VIX futures trade ABOVE spot VIX, and later months usually higher still. Example: spot VIX = 14, front-month VX = 16. Futures price where traders expect volatility to be at settlement, and after calm stretches they price in some reversion upward.
Practical impact: if spot VIX stays at 14, a VX contract bought at 16 drifts down toward 14 as expiration nears and loses 2 points ($2,000) even though the VIX never moved. That roll-down is the "contango decay" that grinds long-VIX positions.
Backwardation (futures below spot)
Front-month VIX futures trade BELOW spot VIX. It typically shows up during sharp sell-offs, when current volatility is high and traders expect it to fall. Example: spot VIX = 35, front-month VX = 28.
Practical impact: convergence now works the other way. If spot stays at 35, the future rises toward it and a long position gains. A short position profits only if volatility falls faster than the 28 the futures already price in. Backwardation ends when volatility subsides and the curve flips back to contango.
Why Long VIX Strategies Lose Money
Most retail "VIX hedging" strategies — buying VIX futures or VIX-tracking ETFs (VXX, UVXY) — structurally lose money over time due to:
- Contango decay: in contango, futures roll down toward a lower spot price
- Roll costs: rolling an expiring contract into the next, pricier month repeats the loss
- Decay leverage: leveraged products compound it; UVXY seeks 1.5x the daily performance of the S&P 500 VIX Short-Term Futures Index
The chart of VXX or UVXY is a long-term decline punctuated by spikes during crises. Long-VIX positions are correct for hours-to-weeks during volatility spikes; wrong for months-to-years during calm markets.
The XIV blowup: On February 5, 2018, the intraday indicative value of Credit Suisse's inverse-VIX ETN (XIV) fell to 20% or less of the prior day's close, an "acceleration event" that ended the product (Credit Suisse notice). Short-VIX strategies look brilliant during normal markets and catastrophically wrong during volatility spikes. The expected profit and the catastrophic loss are baked into the same trade — they aren't separate scenarios.
Can You Trade VIX Futures at a Prop Firm?
VX and VXM trade on Cboe Futures Exchange, not CME Group. Futures prop firms set their own permitted-products lists: Topstep's (updated July 13, 2026) covers CME Group futures only and lists no VIX futures. Check the firm's own list before you plan a VIX trade. Even where VIX is allowed, it is hard on prop accounts:
- Outsized P&L swings: $1,000/point multiplier means a 5-point session = $5,000 P&L per VX contract
- Gap risk: VIX gaps overnight on geopolitical news, earnings, central bank statements
- Daily loss limit violations: a single VX position can blow through a prop account's daily loss limit in one move
- Trailing drawdown sensitivity: volatility's mean-reversion creates whipsaw P&L that triggers trailing drawdowns
If you want to trade VIX futures, you typically need a self-funded account with a broker that offers CFE products. If you're still learning, our step-by-step guide for new futures traders starts with micro equity index contracts instead.
How VIX Futures Compare to Other Futures
| Factor | VIX (VX) | S&P 500 (ES) | Crude Oil (CL) |
|---|---|---|---|
| Exchange | Cboe Futures Exchange | CME | NYMEX (CME Group) |
| Contract size | $1,000 × VIX futures price | $50 × S&P 500 | 1,000 barrels |
| Tick value | $50 (0.05) | $12.50 (0.25) | $10 ($0.01/bbl) |
| Settlement | Cash, to the VIX SOQ | Financially settled | Physically delivered |
Trading VIX Futures (If You Insist)
For traders who understand the structure and still want to trade VIX:
Strategy A: Short VIX during contango, hedge during events
Short front-month VX during normal contango markets. Cover positions before scheduled events (FOMC, NFP, earnings). Re-enter after the event passes. The strategy profits from contango decay while avoiding the catastrophic-loss tail.
Strategy B: Day-trade VIX around macro events
Long VIX into FOMC announcements when expectation is dovish/hawkish surprise. Short VIX into resolution of geopolitical events. Tight time window means contango drag minimal. Requires deep macro knowledge.
Strategy C: Term-structure arbitrage
Spread the front-month vs back-month VIX futures based on contango steepness. Profitable when steep contango compresses; unprofitable when it widens. Requires sophisticated risk management.
None of these are beginner strategies. Most traders should leave VIX futures alone and focus on ES/NQ; our ES and NQ futures guide covers both contracts.
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Get Free Access →FAQ
What are VIX futures contracts?
Cash-settled futures on the Cboe Volatility Index, listed on Cboe Futures Exchange (CFE) under the symbol VX. They settle to a special opening quotation of the VIX.
What is the VIX futures contract size?
One VX contract is $1,000 times the VIX futures price, so a 1-point move is $1,000. The Mini VIX (VXM) is $100 times the price, one-tenth the size.
Why do VIX futures differ from spot VIX?
Spot VIX isn't tradeable. Futures price where traders expect the VIX to be at settlement, so they can sit above (contango) or below (backwardation) spot.
What is VIX contango?
Front-month futures above spot VIX. Futures converge to spot by settlement, so in contango a long position loses value if the VIX stays flat.
What is VIX backwardation?
Front-month futures below spot VIX, usually during sell-offs. Convergence then favours longs; shorts profit only if volatility falls faster than the futures already price in.
Can I trade VIX futures with a prop firm?
VX trades on CFE, not CME. Prop firms set their own permitted-products lists (Topstep's covers CME Group futures only), so check the firm's list first.
Is VIX profitable to trade?
Structurally hard. Long VIX futures lose to contango roll-down in calm markets; short VIX positions can be wiped out in spikes. Day trading around events is possible but advanced.
Bottom Line
VIX futures are advanced instruments with structural decay. Most retail traders lose money trying to trade them — either bleeding from contango or blowing up from volatility spikes. For prop firm path, skip VIX entirely. For self-funded path, only trade if you understand contango/backwardation, mean-reversion timing, and gap risk. ES and NQ provide better risk-adjusted opportunity for active day traders, and the E-mini beginner's guide is the place to start.
The Cleaner Path: ES/NQ + Prop Firm
Free Discord + futures strategy. No VIX gambling. Pass a prop firm with capital protection.
Get Free Access →Related Reading
- What Is a Futures Contract
- E-mini Futures Beginner's Guide
- How to Trade Futures
- Best Futures Prop Firm 2026
Sources
- Cboe: VIX futures (VX) contract specifications
- Cboe: Mini VIX futures (VXM) contract specifications
- Cboe: VXM tick increment change (2022)
- Cboe: VIX Index overview and methodology
- Cboe: VIX historical data
- Credit Suisse: XIV event acceleration notice (SEC filing, Feb 6, 2018)
- ProShares: UVXY fund page
- Topstep: When and what products can I trade?