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    European indices opened slightly higher, while US futures declined, which may affect trading sentiment.

    by VT Markets
    /
    Sep 19, 2025

    Cautious Market Environment

    The markets are showing a cautious mood. In Europe, we see small gains that could easily be lost if negative feelings from the US spread. This often happens before major economic reports are released, and with everyone paying close attention to central bank comments, the market is unsure about its next move. The VIX index, which measures market fear, has risen to around 17 this month. This suggests that traders are preparing for more volatility ahead. Given this uncertain atmosphere, it’s a good time to protect your current stock portfolios. We recall how quickly markets fell in late summer 2023. Buying put options on indices like the Euro Stoxx 50 or the S&P 500 can act as effective insurance. This tactic allows you to benefit from any unexpected gains while also setting a limit on potential losses if selling increases.

    Trading Strategies

    If we think this sideways movement will continue, selling volatility might be a better option. For instance, the German DAX has been stuck in a narrow 300-point range for most of September without making a clear move. Using a strategy like an iron condor, where you sell both an out-of-the-money call and put option, can profit from limited price movement and the passage of time. Create your live VT Markets account and start trading now.

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