Vix Futures large price mismatch

I am currently invested in the Vix December and just wanted to get a little understanding why the futures are so out of “whack” with the real price?

Yesterday 22nd November we saw a movement of 3.50 (roughly) and but in the Vix Dec futures in Trading212 it was 1.468 (roughly) so am curious to why the futures are so far apart?

Cheers :smiley:

Hey @jimmyknowsnothing :wave:

If you’re referring to the difference between the price of the spot contract and the price of the futures contract, then perhaps, it’s worth distinguishing that, we offer futures contract indices rather than spot contract indices on our platform. I’ll explain why that’s important below:

As you already know, futures don’t distribute dividends, similarly to the spot ones - It’s reflected in their price.

When it comes to spot instruments, the dividend distribution on a particular day is reflected as a proportional downward drop in the price, which is not present in the futures price. That’s why the futures contract has a higher spread to compensate for that very same difference. Hence, the reason, for the mismatch.