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ETF Option Trading Strategies

1. Buying a Call Option A call option is the right to buy stock, or in this case an ETF. Up until the expiration date of the call, you have the right to buy the underlying ETF at a certain price known as the strike price. 2. Selling a Call Option When you sell a call, you take the opposite position of a call buyer. You want the ETF to go down. Selling options is a more advanced trading strategy than buying options. When purchasing options, the maximum risk is the purchase price and the profit is unlimited to the upside. However when selling an option, the maximum profit is the sale price and the risk is unlimited. Remember to be very careful and... 

date5 Feb
Different ETN Types

1. Commodity ETNs Commodity ETFs, commodity ETNs seek to emulate the price performance of a particular commodity or commodity index. Some of the more popular commodity ETNs track products such as gold, oil, and energy. Commodity ETNs consist of derivative assets such as forward contracts, futures, and options. The goal is to be able to invest in a commodity like oil without actually having to buy a barrel of oil. 2. Currency ETNs Exchange traded note is a currency ETN. Like currency ETFs, these types of ETNs look to track the price of a particular currency. They can track a single foreign currency like the British Pound or track a basket of currencies... 

date5 Feb
ETFs History

In 1989, when the first ETF showed up in Canada as the Toronto Index Participation Fund (TIP 35). Flash forward to 1993 when the first ETF appeared in the United States as the Standard & Poor’s 500 Depository Receipts. Asia followed suit in 1999 with its first ETF, the Hong Kong Tracker Fund. And last but not least (not really last either) was Europe’s Euro STOXX 50 market ETF launched in 2001. By 2002 there were 246 domestic and foreign ETFs across the globe. Europe led the league with 106, but the United States was not far behind with 102. Asia (including Japan) and Canada followed up with 24 and 14 ETFs respectively. At the end of... 

date5 Feb
Different Types of ETFs

1. United States Market Index ETFs 2. Foreign Market Index ETFs 3. Foreign Currency ETFs 4. Sector and Industry ETFs 5. Commodity ETFs 6. Derivative ETFs 7. Style ETFs 8. Bond ETFs 9. ETNs – Exchange Traded Notes 10. Inverse ETFs 11. Innovative ETFs  »View More

date5 Feb
A List of Gold ETFs

Gold & Metal Exchange Traded Funds • XME – the SPDR S&P Metals & Mining ETF • GLL – the UltraShort Gold ProShares ETF • PSAU – the PowerShares Global Gold & Precious Metals ETF • UGL – the ProShares Ultra Gold ETF • AGQ – the ProShares Ultra Silver ETF • ZSL – the ProShares UltraShort Silver ETF • HUZ – Horizons BetaPro COMEX Silver ETF • HUG – Horizons BetaPro COMEX Gold ETF • SOGL – the ETFS Physical Swiss Gold Shares ETF • PALL – the ETFS Palladium Physical Shares ETF • PPLT – the ETFS Platinum Physical Shares ETF • GLD... 

date5 Feb
3 Steps on The Secret to finding the Best ETF

• Step 1 Analyze your portfolio. If your portfolio is well diversified and already contains physical goods, then you might want to buy a GOLD ETF to hedge against risk. When the market goes down, usually gold will go up. That way, your stocks will go down but your gold ETF will go up. • Step 2 Use ETF screener to find the best ETF. Most ETF screeners can screen out ETF’s based on different criteria. You can use a screener to show you the past and future performance of any ETF. Some ETF Screeners have pre-built screeners to find the best ETF according to pre-defined criteria. • Step 3 Diversify your portfolio. Sometimes there is... 

date5 Feb
Invest in ETFs Step by Step Guide

• Step 1 Remember that there are lots of foreign ETFs, think about the role ETFs will play in your portfolio. If you’re looking to find an ETF that mirrors an index like the Dow Jones, then you’ll be looking for different ETFs than someone who wants to invest in a specific industry. • Step 2 Be precise. Approach your broker with the exact number of ETFs you want to buy. You have to pay a broker’s fee every time you buy or sell this type of security. The commission is the same no matter how many shares you’re buying, though, so small trades can sometimes cost you more than you’ll make. • Step 3 Protect your... 

date5 Feb
Trading Commissions

It is a valid question, but make sure you fully understand the answer before you make a decision on choosing a commodity broker based on trading commissions. Since about 2005, full-service rates have typically ranged between $30 and $80. Remember, commission rates on futures contracts are paid per contract, not per order. Comparing commissions are based on a round-turn rate. A round-turn rate covers both the buy and sell sides of a trade. A half-turn rate only covers the buy or sell side of a trade. The trading style of a full-service commodity broker will play a major part in the commission you will pay. If he wants to make trade recommendations... 

date5 Feb
3 Websites on Futures Quotes and Charts

Delayed quotes are typically 10-30 minutes behind real-time prices. Most free quote services use delayed quotes. Real-time quotes are prices where the market is currently trading – hence the term, real-time. Most services will charge you a fee for real time quotes. Prophet.net An Excellent one-page format for futures quotes that are organized by sector. They have links where each quote takes you to the respective chart. The charts also include techniChange Permalinkscal analysis studies. FutureSource One of the most popular sites for futures traders that offer free quotes on futures and options and they have excellent charts with several... 

date5 Feb
How to become a Successful Commodity Broker?

Many who become commodity brokers do not survive past the first two years. The brokers who work hard and understand what it takes to be successful tend to have long and prosperous careers as commodity brokers. Are you one of them? Being a commodity broker is not just about trading commodities. You have to be a salesman, a market analyst and you have to provide customer service to multiple accounts on any given day. Some days will be absolutely exhilarating and other days you will just be feeding that soon-to-be ulcer. You have to be always on your toes on the current trends. First, you need to find out what objective the prospect has in trading... 

date5 Feb