Everything Trading

After identifying the right ETP, the next step is execution: In this series we identify the potential perils and opportunities of trading ETPs.

  • Understanding ETF Liquidity

    For individual stocks, liquidity is all about trading volume and its regularity—more is better. For ETPs, however, there’s more to consider.

  • How To Trade ETFs: A Practical Guide

    There's more than one way to trade an ETF: For example, there are market orders, limit orders, and NAV orders. The best order type to use depends on individual circumstances.

  • Trading Away for Advisors: Off-Exchange Trading

    In most of Europe, the acronym “ETF”—exchange-traded fund—is somewhat misleading. While ETFs are definitely “traded,” the majority of all ETF volume is actually transacted “off-exchange.”

  • Special Situations: Premiums & Discounts

    In “Premiums and Discounts,” we introduced and defined the terms, and reviewed how the creation and redemption mechanism usually corrects premiums and discounts. In this article, we’ll take the discussion a step further to highlight some of the more intricate and lesser-known reasons ETFs trade at premiums or a discounts, and what that means to you as an investor.

  • Exchanges and ETPs

    If you’ve been around anyone in finance, or pay attention to financial news, you’re likely familiar with the New York Stock Exchange or the London Stock Exchange. So what exactly is an exchange, and why do we care about them if we’re interested in exchange-traded products (ETPs)?

  • Authorised Participants

    Authorised participants (APs) are one of the major parties at the center of the ETP creation and redemption mechanism and, as such, play a critical role in ETP liquidity.

  • How things trade: Bid-Offer Spreads

    ETPs trade like stocks. ETPs trade nothing at all like stocks. Both of these statements are true, and understanding how that can be the case is critical to becoming a good ETF trader.

  • Risk Market or Agency Broker: An Advisor Perspective

    Compared with traditional mutual funds, ETFs offer investors a powerful new option—the ability to trade intraday. To understand better how to make efficient use of this liquidity option, it’s helpful to divide trades into two categories: risk and agency trades.