Can someone explain this to me? What the fuck is it and why did it crash so suddenly?

Did you ever hear the tragedy of the XIV?

I thought not. It's not a story Credit Suisse would tell you. It's a derivatives legend. XIV was an exchange traded note, so leveraged and risky it could double your money every year. The VIX index is a pathway to many profits some consider to be unnatural. It became so leveraged, so profitable... the only thing it was afraid was the termination event, which eventually, of course, happened. Unfortunately, it taught its apprentice SVXY everything it knew, then its apprentice duplicated its trading algorithms as it died. It's ironic, it sacrificed itself to warn others of the risk, but then they all double down.

vix investments are a scam

finance.yahoo.com/quote/SVXY
finance.yahoo.com/quote/UVXY

XIV is the inverse volatility index which is basically something you can invest in if you think the market is stable (inverse volatility = stability) but since indexes started crashing over the last few days and boomers are shook and fearful, the price of XIV fell indicating expected upcoming volatility (lack of stability)

Apparently several big hedge funds an shit lost hundreds of millions of dollars from this over the last couple days

>9 points in the 4th
wew lad

That looks more like sunset than night dude

It's people trading imaginary numbers based on speculative numbers.

CREDIT SUISSSSSSSSEEEEEE

XIV is the inverse volatility index. If the market is stable, it goes up in value; if it's unstable it goes down in value.

VIX is the opposite (hence why it's reverse) where it goes up if the market is unstable and it has. The DOW dropped 1500 points, XIV liquefied and VIX went back in time.

An exchange traded note (ETN) tied to the inverse (XIV) of an index that treats future volatility as a commodity (VIX) It crashed because the volatility index pumped up over 100% yesterday, and the note that was tied to the inverse of the VIX gets liquidated if/when the VIX increases by +80% (which apparently had never happened before)
Tl:DR apparently you can trade futures on/short market volatility as it’s treated by a commodity. Bunch of people got burned. Of course I could be wrong about how that VIX/XIV trade actually works, it’s complicated and I’m not super familiar with those sort of (((investments)))
But remember goys that cryptocurrency is a total scam cause it’s not backed by anything!

Two words: Credit Suisse.
Some products they offer are beyond shady, they’re derivatives of derivatives wrapped into a note. All of them carry ridiculous risk.
the real reason though. Look up “termination event” OP or simply read the pricing supplement for XIV. It will tell you everything you need to know.

>short vol ETN
>underlying is basically a bunch of short contracts on VIX futures
>prospectus states that a 100% or greater move in VIX futures in 1 day means the entire fund is wiped out, since the inverse of 100% gain is complete loss
>SPX shits the bed, VIX spikes
>funds need to rebalance every day at 4:15pm
>all funds end up having to rebalance by covering their fucking shorts at sky-high prices, further driving vix futures prices stupid-high and causing cascading issues
>fund disintegrates in after-hours

Inverse of the VIX, which with the ridiculous crash went up over 100% (VIX measures volatility of the stock market). It has a clause where the instrument liquidate with events over losses of 80% so F for all the hodlers

this dude is good

ibankcoin.com/flyblog/2018/02/05/best-etns-dont-folks/

Did China banning crypto have any effect or was it just the dow

>screenshot takes a literal screenshot of night mode

What the fuck kind of pajeet software are you using?

Nobody is talking about crypto here you dumbfuck
Jeff Bezos' dinner is more important than crypto

fly is the best

he lost 10% of his discretionary account due to XIV fuckery

Sad

so musical chairs: the etf?
I don't even want to know how this is supposed to be used responsibly

Pretty sure CS says not to hold these longer than one day and only trade them if you’re a professionl. Traders don’t usually listen

xivinvestment.com/

This trading program issued a sell signal before the crash, shorting volatility is still profitable if you know when to get out

XIV is gone but SVXY remains and ZIV which is just a less leveraged XIV

Once the futures are back in contango it's time to buy, make sure to redistribute profits every quarter so when you inevitably get BTFO you actually made some money

Legitimately bitconnect in a regulated system lol

beautiful

I don't know about him but it's probably pretty bad on the battery.

lol this
just use f.lux for your nightmode shit, screenshots are still normal color

I am using f.lux senpai. How do I fix this shit? Using snipping tool to take screenshots

The short answer...

1. The VIX is used to trade market volatility. When volatility goes up, the vix goes up.

2. XIV is the exact opposite (even spelled opposite), this is something that makes money when market volatility goes down.

3. So when the market suddenly gets volatile, the XIV crashes.

4. But... while everyone is talking about all the money lost by holders of XIV, the ignore the fact that those who were long the VIX made money.

5. That's how markets work. One person bets up, the other bets down. One will win, one will lose.

BIIIIIICOIIINEEEEEEEEEEEEECCT

This is what is known as the ultimate stop targetting. everyone got wiped out, nobody won. it was done purely for sinister reasons

someone lost a bet, thats what happened

Going long on vix is not profitable, its always headed towards zero. And when the graph flattens out close to zero, a reverse split occurs to pump it up so it can drop again. Overall the spike in vix today/yesterday does not offset the gains from xiv this past month which does not offset the 90% loss in xiv today/yesterday

this is what happened

because you are a retard cryptonigger

Weird. Try turning off flux first (temporary disable option) then doing screenshot.

Did you ever hear the tragedy of Darth XIV The Wise? I thought not. It’s not a story Credit Suisse would tell you. It’s a market legend. Darth XIV was a Dark Lord of the Market, so powerful and so levered he could use the VIX futures to influence the market to create gains…He had such a knowledge of the dark side of the market that he could even keep the volatility he cared about from rising. The Dark Side of the market is a pathway to risk/return skews some consider to be unnatural. He became so levered…the only thing he was afraid of was an acceleration event, which eventually, of course, happened. Unfortunately, he taught the market everything he knew about volatility, then the market killed him in his sleep after hours. Ironic. He could save others from rising volatility, but not himself.

VIX is mooning get in now.

10/10

People realized it was a scam and are now buying into the crypto market.