ETF creation and redemption

What are ETFs? An exchange-traded fund (ETF) is a type of security that tracks a basket of assets, commodities, or indices and trades on a stock exchange. ETFs are similar to mutual funds in that they offer diversification and professional management, but they trade like stocks on an exchange.   You can buy ETFs through a broker just like any other stock. Some brokers offer commission-free trading for selected ETFs. When buying ETFs, you’ll need to pay the fees and commissions you would pay for buying stocks.   Before buying an ETF, it’s essential to research the underlying holdings to make sure they fit your investment goals. For example, if you’re trying to achieve long-term growth, you might want.   One of the most critical aspects of ETFs is their creation and redemption process. This process helps to ensure that ETFs remain true to their underlying indexes. It also allows

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Are CFDs legal?

CFDs, or contracts for difference, are agreements between two parties that are agreed upon before the trade begins.   There are two types of CFD: long and short. The party that chose which side of the trade they wanted to go with will be known as the buyer, while the other will be called the seller.   When both parties have accepted a deal in a financial transaction, it becomes binding if you decide to invest using CFDs when you buy at the offer price and sell at your desired price, whether it is higher or lower than what you bought for).   It means that you do not own any shares in a company when investing in this fashion. You can then choose to close your investment position whenever you want, provided that the market is still open. Are these contracts even legal? Although there is no single answer

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The most popular commodities to trade in Singapore

  Singapore is one of the leading financial hubs in the world. When it comes to commodities trading, Singapore is one of the most popular markets globally. There are many reasons for this, but the chief among them is the liquidity of the market and the wide range of products available for traders.   What are commodities? Commodities are physical goods that are bought and sold for economic purposes. They include products such as metals, energy, livestock and agricultural products.   How are commodities traded? Commodities are usually traded through futures contracts. A futures contract is an agreement between two parties to buy or sell a commodity at a specific price on a particular date in the future.   What factors affect the prices of commodities? Several factors affect the price of commodities. These include:   Supply and demand If there is an ample supply of a commodity, its price

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Options Trading for Beginners

Options Trading for Beginners

Strategies used in options trading have been running the gamut ranging from exotic “multi-legged” beast to more uncomplicated “single-legged” trades. Even so, no matter how complex or simple they are, one thing all strategies have in common is that they are based on the puts and calls fundamentals. Here are options strategies that are built on the basics of puts and calls. These strategies are what are commonly known as being “one-legged.” It is also worth noting that simple isn’t always an indication of a ‘risk-free’ strategy. All it means is that the strategies are not as complicated as the multi-legged option stratagems. Long call Strategy In this strategy, you can “go long” or purchase a call option. It’s a straightforward strategy wagering that an underlying stock will rise higher than the strike price by expiration date. Why it’s used Those who are not worried about losing the premium opt

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