Investors pile into 'fear index' futures ahead of Fed rate decision

The most recent data shows that, as of 13 September, net long positions in VIX futures stood at a record high of 37,925 contracts, according to Reuters. Futures on the VIX, known as the fear index, were introduced in 2004 and provide an insight into the volatility anticipated by the market over the next 30 day period. Long VIX futures options can be used by equity investors as a hedge in turbulent markets, as they benefit in case volatility rises. In August, investors were trading a net short in VIX futures after data coming from China prompted many to anticipate the global sell-of...