VIX futures are exchange-traded contracts that allow market participants to gain exposure to the expected future level of the Cboe Volatility Index, or VIX. Unlike the spot VIX, which measures 30-day expected volatility of the S&P 500 from SPX option prices, a VIX future represents a market price for where the VIX is expected to be at a specific future expiration date.
That distinction is the key to understanding VIX futures.
The VIX can be 15 today while a VIX future expiring several weeks later trades at 18. Neither number is necessarily wrong. They represent different points in time.
This guide explains how VIX futures work, how they are priced, why the futures curve moves into contango or backwardation, how expiration and settlement work, and how traders and portfolio managers use volatility futures for hedging or exposure.
Quick answer: VIX futures are cash-settled futures contracts based on the future value of the VIX Index. They trade on the Cboe Futures Exchange and are commonly used for volatility exposure, hedging, speculation and relative-value strategies. Their prices can differ substantially from the current VIX because each contract reflects expectations for a particular future date.
What Is the VIX Index?
The Cboe Volatility Index (VIX) is designed to measure the market’s expectation of 30-day volatility for the S&P 500 Index.
It is calculated from prices of a broad range of S&P 500 options rather than from the S&P 500’s historical price movements. Cboe’s methodology uses SPX and SPXW options and constructs a constant 30-day measure of expected volatility.
The VIX is therefore different from realized volatility.
- VIX: forward-looking expected volatility derived from option prices
- Realized volatility: volatility calculated from actual historical price movements
- S&P 500: the equity index whose option market supplies the inputs used in the VIX calculation
The VIX is often called a market “fear gauge,” but that nickname can be misleading. The index is specifically a measure of expected volatility over approximately 30 days; it is not a direct prediction of whether the S&P 500 will rise or fall. Cboe also notes that the VIX is non-directional.
What Are VIX Futures?
VIX futures are futures contracts whose underlying reference is the VIX Index.
The contracts are traded on the Cboe Futures Exchange and are cash-settled rather than physically delivered.
The important concept is time.
The current VIX represents the market’s 30-day expected volatility at the current point in time. A VIX futures contract, however, has a specific expiration date. Its price reflects the market’s expectation of the VIX level relevant to that future expiration.
For example, imagine:
| Market instrument | Hypothetical value |
|---|---|
| Spot VIX today | 15 |
| Near-term VIX future | 16.50 |
| Second-month VIX future | 18 |
| Third-month VIX future | 19 |
This does not mean traders are simply adding a fixed premium to the VIX.
Each futures contract has its own maturity and reflects expectations about future volatility conditions.
VIX Futures vs. Spot VIX
This is one of the most important distinctions to understand.
| Feature | Spot VIX | VIX Futures |
|---|---|---|
| What it represents | Current VIX Index level | Expected future VIX level represented by a contract price |
| Time horizon | Constant 30-day expected volatility | Specific future expiration |
| Tradable directly? | The VIX Index itself is an index value | Yes, through VIX futures contracts |
| Settlement | Index calculation | Cash settlement |
| Main reference | SPX option prices | Market expectations about future VIX |
| Can differ from the other? | Yes | Yes |
The VIX Index itself is calculated from SPX option prices. VIX futures are separate exchange-traded contracts with their own prices. Cboe provides both VIX index data and VIX futures market data separately.
This explains why a VIX futures chart should never be treated as a simple copy of the spot VIX chart.
How Do VIX Futures Work?
VIX futures work similarly to other futures contracts in their basic structure: two parties agree to a contract whose value is determined by an underlying reference at a future date.
The difference is that the underlying reference is the VIX.
A simplified process looks like this:
- A VIX futures contract is listed with a future expiration date.
- Buyers and sellers trade that contract on CFE.
- Its price changes as expectations for future volatility change.
- The contract is marked to market through the futures settlement process.
- At expiration, the final value is determined using the VIX settlement process.
- The contract is cash-settled rather than delivering an asset.
Cboe currently lists monthly and weekly VIX futures, giving market participants different expiration dates for volatility exposure.
VIX Futures Contract Specifications
Contract specifications can change, so traders should always check the latest Cboe documentation before trading.
Cboe’s current contract specifications identify the VIX futures symbol as VX and show a 1,000 multiplier. The listed trading schedule includes extended and regular trading sessions.
| Contract feature | VIX futures |
|---|---|
| Product | Cboe Volatility Index futures |
| Symbol | VX |
| Exchange | Cboe Futures Exchange |
| Settlement | Cash |
| Multiplier | 1,000 |
| Expirations | Monthly and weekly contracts |
| Final settlement | VIX SOQ-based settlement |
| Trading | Extended and regular sessions |
The dollar value of a position depends on the futures price, multiplier and the number of contracts held.
For example, if a hypothetical VX futures price is 18.00, its notional value based on the 1,000 multiplier would be:
18.00 × 1,000 = $18,000
That does not mean a trader necessarily pays $18,000 upfront to open the position. Futures are margined products, and the amount required to establish a position is different from its notional value.
How Are VIX Futures Priced?
VIX futures pricing is more complicated than simply taking today’s VIX and adding a premium.
A futures price incorporates expectations about what the VIX may be at the contract’s expiration, along with market supply and demand, risk premiums, hedging demand, volatility expectations and the shape of the volatility term structure.
This is why a VIX future can trade above or below the current spot VIX.
Why Can VIX Futures Be Above the VIX?
Suppose:
- Spot VIX = 15
- One-month VIX future = 17
- Two-month VIX future = 18
The curve is upward sloping.
This is commonly called contango when later-dated futures are priced above nearer-dated contracts.
It does not automatically mean that the market expects an immediate stock-market decline.
Instead, it indicates that volatility futures for those future dates are priced at higher levels than the nearer contracts.
Why Can VIX Futures Be Below the VIX?
Now imagine:
- Spot VIX = 30
- One-month future = 25
- Two-month future = 23
This is consistent with a volatility term structure in which futures prices decline as expiration moves farther away.
This condition can occur during periods when current volatility is unusually elevated and the market prices some normalization over time.
The key point is that the VIX and VIX futures answer different time-horizon questions.
What Is the VIX Futures Curve?
The VIX futures curve is the relationship between VIX futures prices and their expiration dates.
A simplified curve might look like this:
| Expiration | Hypothetical VIX futures price |
|---|---|
| Near month | 16 |
| Month 2 | 17 |
| Month 3 | 18 |
| Month 4 | 19 |
| Month 5 | 19.50 |
The curve rises as expiration moves farther into the future.
The curve can provide information about how volatility exposure is priced across different maturities.
Cboe publishes VIX futures market data with multiple expiration dates, allowing traders to observe this term structure directly.
Why Does the VIX Futures Curve Matter?
Looking only at the spot VIX can hide important information.
Two days could have the same spot VIX value but completely different futures curves.
For example:
Scenario A
Spot VIX = 18
Front future = 19
Second future = 20
Third future = 21
Scenario B
Spot VIX = 18
Front future = 17
Second future = 16
Third future = 16
The spot VIX is identical in both examples, but the term structure is very different.
That difference can matter to anyone studying volatility exposure or the potential cost of maintaining a futures position over time.
What Is VIX Futures Contango?
VIX futures are in contango when later-dated futures are priced above nearer-dated futures.
For example:
| Contract | Price |
|---|---|
| Front month | 16 |
| Second month | 18 |
| Third month | 19 |
| Fourth month | 20 |
The curve slopes upward.
Contango is common enough in volatility products that it is an important concept for anyone studying VIX-related exposure.
But there is a critical distinction:
Contango is a description of the futures curve, not a guaranteed prediction about where the stock market is going.
The curve can change rapidly as market expectations change.
What Is VIX Futures Backwardation?
Backwardation occurs when nearer-dated VIX futures trade above later-dated futures.
Example:
| Contract | Price |
|---|---|
| Front month | 30 |
| Second month | 26 |
| Third month | 24 |
| Fourth month | 23 |
The curve slopes downward.
Backwardation can occur when near-term volatility expectations are substantially elevated.
However, backwardation should not automatically be interpreted as a certain forecast that equities will continue falling. Cboe has specifically discussed why the shape of the VIX curve should not be treated as a simple directional prediction for the future stock market.
Contango vs. Backwardation
| Feature | Contango | Backwardation |
|---|---|---|
| Curve shape | Upward sloping | Downward sloping |
| Near-term futures | Lower | Higher |
| Later futures | Higher | Lower |
| Common interpretation | Future volatility priced above near-term levels | Near-term volatility priced above later levels |
| Guaranteed market forecast? | No | No |
The curve should be analyzed alongside market conditions rather than treated as a standalone trading signal.
What Is the VIX Premium?
The phrase VIX premium can refer to the tendency for VIX futures or volatility products to trade above the current spot VIX under certain market conditions.
However, it is better to avoid treating every difference between the spot VIX and a futures contract as one simple “premium.”
The difference can reflect:
- Different time horizons
- Expected mean reversion
- Risk premiums
- Hedging demand
- Supply and demand
- Volatility expectations
- The structure of the futures market
This distinction is especially important when comparing spot VIX with futures.
A futures price of 20 when spot VIX is 17 does not mean the market has simply added a fixed 3-point insurance charge.
The two values refer to different points in time.
Why Do VIX Futures Often Differ From the VIX?
Several factors can cause a difference.
1. Different maturity
The VIX is a constant 30-day expected-volatility measure.
A VIX future may expire weeks or months from now.
2. Mean reversion expectations
The VIX has historically exhibited mean-reverting characteristics, although the timing and magnitude of any move toward historical levels are uncertain. Cboe notes the VIX tends to be mean reverting over time.
3. Risk premiums
Market participants may be willing to pay for volatility exposure because volatility can become particularly valuable during equity-market stress.
4. Supply and demand
Institutional hedging, speculative positioning and other market activity can affect futures prices.
5. Changing market expectations
A sudden increase in expected risk can cause near-term futures to move rapidly.
How to Trade VIX Futures
Trading VIX futures requires an understanding of futures mechanics, margin, contract specifications and volatility behavior.
A general educational workflow is:
Understand the contract
Before considering a position, identify:
- contract month
- expiration date
- multiplier
- tick size
- margin requirement
- settlement mechanism
Cboe publishes the official contract specifications and should be checked for current details.
Study the entire curve
Do not look at only one VIX futures contract.
Compare several maturities.
This helps show whether the curve is:
- upward sloping
- downward sloping
- relatively flat
- changing rapidly
Consider the reason for the position
VIX futures can be used for different purposes, including:
- volatility exposure
- portfolio hedging
- tactical positioning
- relative-value strategies
- calendar spreads
These uses have different risks.
Understand margin
Futures are leveraged instruments.
The cash or margin required to establish a position can be much smaller than its notional exposure.
That can magnify both gains and losses.
Monitor expiration
A VIX futures position does not simply continue indefinitely.
Each contract has a specific expiration date and settlement process.
VIX Futures Strategies
There is no single universal VIX futures strategy. Different approaches are designed around different objectives and risk assumptions.
Directional volatility exposure
A trader may take a futures position based on a view about future volatility.
The key risk is that the VIX futures price can move differently from the spot VIX.
Calendar spreads
A calendar spread involves taking positions in different VIX futures expirations.
For example, a trader could compare a near-term contract with a later contract.
The objective is to focus more on the relationship between maturities rather than simply betting on one absolute VIX level.
Volatility hedging
Portfolio managers can use volatility-related instruments as part of broader risk-management approaches.
The concept is straightforward:
If equity-market stress increases and volatility rises, a volatility position may offset some losses elsewhere in a portfolio.
But the hedge is not guaranteed to work perfectly.
Timing, contract selection, basis risk and the shape of the futures curve all matter.
How VIX Futures Can Be Used for Hedging
Suppose an investor has substantial exposure to an equity portfolio.
The investor is concerned about a potential period of sharply increased volatility but does not necessarily want to sell the entire portfolio.
A volatility hedge could be considered as one part of a broader risk-management framework.
The important concept is offsetting exposure.
If volatility rises sharply, a properly structured volatility position may gain value while the equity portfolio loses value.
But there are several limitations.
Hedge timing matters
A volatility future can decline even when an investor expects equity-market uncertainty to remain elevated.
The futures curve matters
The selected contract may not respond exactly like the spot VIX.
The hedge has carrying considerations
Maintaining exposure across multiple expiration dates can produce different results depending on how the curve changes.
A hedge can lose money
Insurance-like protection has a cost, and a hedge may lose value when the expected adverse event does not occur.
For these reasons, VIX futures should be understood as a risk-management instrument rather than a guaranteed portfolio protection mechanism.
VIX Futures Expiration Explained
VIX futures have specific expiration dates.
For standard VIX futures, the last trading day is generally the expiration date, usually a Wednesday. Trading in an expiring contract ends at 9:00 a.m. ET on that day, according to Cboe’s current FAQ.
VIX Weeklys futures provide additional expiration choices. Cboe says weekly VIX futures generally expire on Wednesdays and can provide more precise short-term exposure.
Because contract schedules can change around holidays, traders should verify the official Cboe expiration calendar rather than relying on a generic rule.
How Is VIX Futures Settlement Calculated?
This is one of the most important technical points.
VIX futures do not simply settle at whatever the screen shows for the VIX Index at the moment trading stops.
The final settlement value for VIX futures and options is determined on expiration morning using a Special Opening Quotation (SOQ) of the VIX Index.
The settlement process is based on prices of the relevant S&P 500 options.
That means:
Spot VIX ≠ necessarily final VIX futures settlement value.
This is one reason traders should not assume that an expiring futures contract will settle at the immediately visible spot VIX number.
Why Can Settlement Differ From Spot VIX?
The ordinary VIX calculation and the final settlement calculation use different procedures and timing.
The VIX is continuously calculated from eligible SPX option prices during its calculation periods.
The final settlement value uses the SOQ process on expiration morning.
Cboe describes the settlement process as being patterned after the settlement of A.M.-settled S&P 500 Index options and designed so that the relevant option prices used in settlement can be traded.
Daily Settlement vs. Final Settlement
These concepts should not be confused.
Daily settlement
A futures contract is marked to market using the exchange’s daily settlement process.
Final settlement
At expiration, the contract is settled against its final settlement value.
For VIX derivatives, that final value is determined using the SOQ process.
This distinction matters because a futures position can experience gains or losses before expiration even though the final settlement has not yet occurred.
VIX Futures Trading Hours
Cboe currently lists VIX futures as generally available for trading for approximately 23 hours per weekday, from Sunday evening through Friday afternoon, with a daily trading halt.
The exact session structure can vary by product and holiday schedule.
Always check the current exchange schedule before relying on a particular trading window.
VIX Futures Margin Requirements
VIX futures are leveraged derivatives, so traders must meet the applicable margin requirements.
Margin is not the same thing as the full notional value of the contract.
For example, a contract with a hypothetical notional value of $20,000 does not necessarily require $20,000 in margin.
The actual requirement depends on the contract, market conditions, clearing rules and the brokerage’s requirements.
Because margin requirements can change, the current exchange and broker documentation should be checked before trading.
VIX Futures vs. VIX Options
VIX futures and VIX options are both related to volatility, but they are different instruments.
| Feature | VIX Futures | VIX Options |
|---|---|---|
| Instrument | Futures contract | Option contract |
| Exposure | Long or short futures | Calls or puts |
| Expiration | Specific futures expiration | Specific option expiration |
| Settlement | Cash | Cash |
| Main risk | Futures price movement and leverage | Premium, volatility, time decay and option Greeks |
| Complexity | High | High |
| Common uses | Hedging, volatility exposure, spreads | Hedging, directional and volatility strategies |
Cboe offers both VIX futures and options as separate products within its volatility complex.
The appropriate instrument depends on the intended exposure and the risks the user understands.
VIX Futures vs. VIX ETPs
VIX futures should also be distinguished from exchange-traded products that obtain exposure to VIX futures.
A VIX-related ETP may hold or reference a portfolio of futures rather than directly representing the spot VIX.
That difference can create substantial performance differences over time.
For example, an ETP that continually rolls futures can be affected by:
- Contango
- Backwardation
- Roll timing
- Management fees
- Tracking differences
- Changes in the futures curve
Therefore, seeing that the VIX rose sharply does not automatically mean every VIX-linked product gained the same percentage.
Key Risks of VIX Futures
VIX futures can provide useful volatility exposure, but they involve significant risks.
Leverage risk
A relatively small amount of capital can control a much larger notional position.
That increases the impact of price movements.
Basis risk
The VIX future may not move one-for-one with the spot VIX.
Curve risk
The shape of the futures curve can materially affect a position.
Expiration risk
The contract ultimately settles using the VIX settlement process rather than simply using an arbitrary intraday spot quote.
Margin risk
Large adverse moves can create additional margin requirements.
Volatility shock risk
VIX futures can move rapidly when markets experience sudden changes in risk expectations.
Strategy risk
A strategy that worked under one volatility regime may perform differently under another.
Common VIX Futures Mistakes
Mistake 1: Treating the VIX as a stock
The VIX is an index calculated from options. It is not a company share.
Mistake 2: Assuming VIX futures equal spot VIX
They represent different time horizons.
Mistake 3: Ignoring the futures curve
Looking at one contract without comparing other maturities can hide important information.
Mistake 4: Assuming contango predicts stocks will rise
Contango describes the structure of futures prices. It is not a guaranteed stock-market forecast.
Mistake 5: Assuming backwardation guarantees a crash
Backwardation can accompany elevated near-term volatility, but it is not a guaranteed prediction of future equity returns.
Mistake 6: Ignoring settlement mechanics
The final VIX futures settlement is determined through the SOQ process.
Mistake 7: Confusing notional value with margin
The contract’s notional exposure and the amount required as margin are different concepts.
Mistake 8: Focusing only on the front contract
The broader curve can provide more context than a single futures price.
A Simple VIX Futures Example
Consider a hypothetical market:
- Spot VIX: 16
- One-month future: 18
- Two-month future: 19.50
- Three-month future: 20.25
The futures curve is upward sloping.
Now suppose market stress suddenly increases.
The spot VIX jumps to 28.
The futures curve might also rise, but the different contracts do not have to move by identical amounts.
For example:
| Instrument | Before | During stress |
|---|---|---|
| Spot VIX | 16 | 28 |
| One-month future | 18 | 30 |
| Two-month future | 19.50 | 28 |
| Three-month future | 20.25 | 26 |
These figures are purely illustrative.
The example shows why “the VIX went up” is not enough information to determine how every VIX futures contract performed.
Each maturity has its own supply, demand and expectations.
Why VIX Futures Matter for Risk Management
Volatility is an important part of market risk management because equity-market declines can coincide with rapid increases in expected volatility.
VIX futures provide one way for sophisticated market participants to obtain exposure to that volatility environment.
They can be used alongside other risk-management tools, including:
- portfolio diversification
- cash management
- options
- equity futures
- position sizing
- stop-loss frameworks
- asset allocation
- other hedging instruments
No single instrument eliminates portfolio risk.
For readers who also follow digital assets, it is useful to remember that crypto markets have their own volatility characteristics. OfferBin focuses on live crypto market information and token conversion rather than VIX futures trading, so its tools should not be interpreted as a substitute for a futures trading platform. OfferBin
Frequently Asked Questions About VIX Futures
What are VIX futures?
VIX futures are cash-settled futures contracts traded on the Cboe Futures Exchange that provide exposure to the future level of the VIX Index. Each contract has a specific expiration date and its own market price.
How do VIX futures work?
VIX futures trade continuously during their applicable trading sessions and fluctuate according to expectations for future volatility, market supply and demand, and other factors. At expiration, they are cash-settled using the VIX settlement process.
What is the difference between VIX and VIX futures?
The VIX is a 30-day expected-volatility index calculated from S&P 500 option prices. A VIX future is a separate futures contract representing the market price associated with a future VIX settlement.
Why are VIX futures often higher than the VIX?
VIX futures can trade above the spot VIX when the futures curve is in contango. This can reflect expectations about future volatility, risk premiums and market positioning. It is not simply a fixed premium added to the spot index.
What is VIX futures contango?
Contango occurs when later-dated VIX futures are priced above nearer-dated futures. It describes the shape of the futures curve and should not automatically be treated as a forecast for stock-market direction.
What is VIX futures backwardation?
Backwardation occurs when nearer-dated VIX futures are priced above later-dated contracts. It can occur when near-term volatility expectations are elevated.
Can you buy VIX futures?
Eligible market participants can trade VIX futures through a futures brokerage that provides access to the Cboe Futures Exchange. The VIX Index itself is not something an investor simply buys like a stock.
How are VIX futures settled?
VIX futures are cash-settled. Their final settlement value is determined through a Special Opening Quotation of the VIX Index on the expiration date.
When do VIX futures expire?
Standard VIX futures generally expire on Wednesdays, although holidays can change the applicable schedule. Weekly VIX futures also generally expire on Wednesdays.
What is the VIX futures curve?
The VIX futures curve shows the prices of VIX futures across different expiration dates. It helps market participants examine how volatility exposure is priced across maturities.
Are VIX futures the same as VIX options?
No. VIX futures are futures contracts, while VIX options are options contracts. They have different payoff structures, risks and pricing characteristics.
Are VIX futures the same as VIX ETPs?
No. Many VIX-related exchange-traded products obtain exposure through VIX futures rather than directly tracking the spot VIX. Their performance can therefore differ significantly from changes in the VIX Index.
What is the VIX futures multiplier?
Cboe’s current VIX futures specifications list a 1,000 multiplier. Traders should verify current specifications before trading because exchange rules and product details can change.
Do VIX futures track the VIX exactly?
No. A VIX futures contract represents a future expiration and can trade above or below the current spot VIX.
Why can VIX futures rise less than the VIX?
Different contracts respond to different expectations and time horizons. A sudden spike in near-term volatility may affect the front contract more than later contracts.
Can VIX futures be used for hedging?
They can be used as one component of volatility hedging strategies. However, hedge effectiveness depends on timing, contract selection, the futures curve and the behavior of the underlying portfolio.
Is VIX futures trading risky?
Yes. Futures involve leverage and can produce substantial gains or losses. Margin requirements, rapid volatility changes, curve movements and settlement mechanics all need to be understood before trading.
Does a high VIX mean the stock market will fall?
Not necessarily. The VIX measures expected volatility rather than the direction of the S&P 500. A high VIX can occur during falling markets, but the index itself is not a directional forecast.
VIX Futures: Key Takeaways
| Concept | What to remember |
|---|---|
| VIX | Measures 30-day expected S&P 500 volatility |
| VIX futures | Contracts based on future VIX settlement |
| Spot vs futures | They represent different time horizons |
| Futures curve | Shows prices across expiration dates |
| Contango | Later contracts priced above nearer contracts |
| Backwardation | Nearer contracts priced above later contracts |
| Settlement | Cash settlement using the VIX SOQ process |
| Hedging | Can provide volatility exposure but is not guaranteed protection |
| Margin | Futures exposure is leveraged |
| Main lesson | Never assume a VIX futures price equals the spot VIX |
Final Thoughts
VIX futures are best understood as forward-looking volatility contracts, not as a simple way to buy the VIX.
The most important concepts are the relationship between the VIX and its futures, the shape of the futures curve, contango and backwardation, and the difference between daily trading prices and final settlement.
For beginners, the simplest mental model is:
VIX = current 30-day expected volatility measure
👉VIX future = market price associated with the VIX at a future expiration
VIX futures curve = how those future volatility prices change across maturities
Once those three ideas are clear, concepts such as VIX futures pricing, hedging, roll exposure, expiration and settlement become much easier to understand.
Because VIX futures are leveraged financial derivatives, anyone considering actual trading should review the latest exchange specifications, brokerage requirements and risk disclosures rather than relying solely on an educational article.
For additional market-data and crypto resources, you can explore OfferBin’s resources. OfferBin provides live crypto prices and token conversion for reference; it does not execute VIX futures or other futures trades.