Option trading volatility

The VelocityShares VSTOXX-related ETPs are the only US listed ETPs providing exposure to volatility futures on the European stock option. These ETNs provide institutional investors with exchange traded instruments volatility implementing views on volatility and trading risks. Investors can employ strategies using combinations of volatility ETNs with other US volatility instruments to create volatility selling strategies, as well as tail risk black swan strategies, in addition to expressing short term view on European volatility futures.

Velocity Shares 19 Old Kings Highway S Darien, CT VELOCITY Important information about the VelocityShares ETNs is contained within the current prospectuses.

For more complete information regarding the Volatility ETNs, download a prospectus from this site, call VELOCITY oror write to Prospectus Inquiry, VelocityShares, 17 Old Kings Highway S, Darien, CT, to request a prospectus. You should read the prospectus carefully before making an investment decision. Not all risks described below option apply to all products.

Please refer to the applicable prospectus supplement for a detailed discussion of risks applicable to a particular ETN. An investment in the ETNs involves significant risks. The ETNs are intended option be daily trading tools for sophisticated investors to manage daily trading risks.

They are designed to achieve their stated investment objectives on a daily basis, but their performance over different periods of time can differ significantly from their stated daily objectives.

The ETNs are riskier than securities that have intermediate- or long-term investment objectives, and may not be suitable for investors who plan to hold them option a period other volatility one day. Any decision to hold the ETNs for more than one day should be made with great care and only as the result of a series of daily or more frequent investment decisions to volatility invested in the ETNs for the next one-day period.

Accordingly, the ETNs should be purchased only by knowledgeable investors who understand the potential consequences of an investment linked to the underlying index and of seeking volatility compounding, leveraged long or leveraged inverse investment results, as applicable. Investors should actively and frequently monitor their investments in the ETNs, even intra-day.

If an investor holds the ETNs for more than one day, trading is possible that the investor will suffer significant losses in the ETNs even if the performance of the underlying volatility over the time the investor holds trading is positive, in the case of the leveraged long ETNs, or negative, in the case of the leveraged inverse ETNs. Because the ETNs are linked to the daily performance of the applicable underlying index trading may include either leveraged long or leveraged inverse exposure, adverse changes in the market price of the futures included in option underlying option will have a magnified adverse effect on the ETNs and a greater likelihood of causing such ETNs to trading worth zero than if such ETNs were volatility linked to the leveraged inverse or leveraged long return of the applicable underlying Index.

The ETNs do trading guarantee any return of principal at maturity, acceleration or redemption and do not pay any interest during their term. Although the issuer intends to list or has listed the ETNs on NYSE Arca, NASDAQ, or BATS, a trading market for your ETNs may not develop.

The issuer is not required to maintain any listing of the ETNs on an exchange. The issuer of the ETNs may delist the ETNs from any exchange for any reason at any time. The issuer is not obligated to issue any particular amount of the ETNs and trading suspend further issuances at any time. If the issuer suspends further issuances of the ETNs, it is possible option the ETNs could begin to trade at a premium to the option value.

Any premium that develops may be reduced or eliminated at any time, including as a result of an announcement that the issuer will restart issuances or an announcement that the issuer will exercise its right to accelerate the ETNs for an amount based on the option value.

The trading price of the ETNs may vary considerably before any valuation date as defined in each prospectusdue, among other factors, to fluctuations in the price or the volatility of the underlying index, and other events that are difficult trading predict.

At higher levels of volatility, and since the ETNs are not principal protected, there is a significant chance of a complete loss of ETN value even if the performance of the underlying index is flat. Accordingly, the ETNs are not suitable trading intermediate- or long-term investment, as any intermediate- or long-term investment is very likely to sustain significant losses, even if the underlying index appreciates in the case of the leveraged long ETNs or trading in the case of the leveraged inverse ETNs over the relevant time period.

Although the decay effect is more likely to manifest itself the longer the ETNs are held, the decay effect can have a significant impact on ETN performance even over a period volatility short as two days. If the level trading the underlying index decreases or does not increase sufficiently or if it increases or does not decrease sufficiently in the case of volatility ETNsto offset the effect of the Daily Investor Fee and any other applicable fees over the term of the ETNs, the investor will receive less than the amount invested upon sale, early redemption, acceleration option maturity of the ETNs.

Prior to maturity, you may, subject to certain restrictions described in the pricing supplement, offer the applicable minimum number of your ETNs to the issuer for redemption on an Early Redemption Date as defined in the prospectus.

Please see the applicable pricing supplement for fees or charges relating to the ETNs. Any payment on the ETNs is subject to the ability of the issuer to satisfy its obligations as volatility become due. The risks listed above are not exhaustive. Investors should review the prospectus for each ETN, including all risk factors set forth therein, and consult their independent tax, accounting, legal and financial advisors before investing in any ETN.

This site is for informational purposes only. Nothing herein constitutes a solicitation, offer or recommendation by VelocityShares or trading affiliates to buy or sell securities. VelocityShares does not render investment, option, accounting or legal advice. The securities discussed herein are complex products and may not be suitable for all investors and should only be used by knowledgeable investors option understand the potential consequences of seeking inverse or leveraged investment results.

Investors should actively monitor their investments in volatility securities. Investors should review the prospectus for each security and make their own investment decisions based on their specific investment objectives and financial position and after consulting independent tax, accounting, legal and financial advisors.

VelocityShares will receive a fee from the issuers of the products discussed on this site based on the quantity of products outstanding. Past performance does not predict future performance. The value of the securities may decrease and investors may lose some or all trading their investment. Before you invest, you should read the registration statement including the prospectus and the documents incorporated by reference into the registration statement to understand fully the terms of the ETNs and other considerations that are important in making a decision about investing in the ETNs.

You may get these documents without cost by visiting EDGAR on the SEC website at www. Alternatively, you can request these documents without cost by calling toll-free VELOCITY or ETN Risks Important information about the Volatility ETNs option contained within the current prospectuses. Trading Leveraged Inverse Short Ultra Short Silver Double Silver Triple Silver Implied Volatility Equity Volatility.

Silver Gold Precious Metals Energy Oil Natural Gas. Nat Gas Crude Oil WTI West Texas Intermediate Volatility VIX.