List Of Exchange Traded Options - Understanding Exchange Traded Funds (ETFs)

Dec. 10, 2010 - PRLog -- List Of Exchange Traded Options

In the past few years, exchange traded funds (ETFs, for short) have been gaining popularity among investors and traders. But quite a lot of people are still not clear on just exactly what an ETF is, and often confuse it as a regular mutual fund. Here are some simple and straight forward basics and advantages of ETFs.

Here are the basics on ETFs:

- An Exchange Traded Funds cover a broad range of underlying assets, from stocks, bonds, real estate investment trusts, gold, oil...etc. The list goes on and on. ETFs are like index funds, but trade just like stocks. Plus, all major stock indexes have ETFs based on them. If you have a brokerage account for trading stocks, you can trade ETFs.

- No minimum: Unlike some no-load index funds, ETFs have no minimums. This means that you can purchase as few shares as you like. If you only want to purchase one lonely share...not a problem.

- Continuous pricing: ETFs are continuously being priced, much like stocks. You can hold it for 5 minutes to 5 months or beyond, the choice is yours. Whereas a mutual fund would take orders during trading hours, but the actual transaction are put through at after the close of the market. Get Internet #1 - List Of Exchange Traded Options @ http://tradingcure01.webs.com and be Successful forever!

- ETFs can be shorted. Sell first, buy later. Not all ETFs can be shorted, some are hard to short, and this is only for the very sophisticated investors, as losses can be unlimited.

- One word: Options! Yes, you can trade ETF Option. Though, this is not recommended for beginner traders. Options give you the right to call or put (buy or sell) shares of the ETF some time in the future for specific prices. This can

Why ETFs? How can it improve any portfolio?

- Compare to mutual funds, ETFs are great "cheap" buy. ETFs still have annual fees, but they are much lower than mutual funds, the ETFs fees can be as low as 0.09% of assets, in comparison to about 1.4% for the mutual funds.

- Though margin trading is not for everyone, in the hands of the right people, margin can do wonders for the account balance. ETFs can be margined, and options are also available for them to allow for a variety of investment strategies.

- Inverse ETFs. This is perfect for the investors who think that a certain sector or index will decline, but do not want to sell short and take on extra risk. These inverse ETFs provide all of the benefits of shorting, and you don't need to make direct short sell. In essence, these inverse ETFs, when used correctly, can help an investor hedge some down side risks, and profit from it. Get Internet #1 - List Of Exchange Traded Options @ http://tradingcure01.webs.com and be Successful forever!

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