What are Exchange Traded Funds (ETFs)?
An Exchange Traded Fund (ETF) is a collection of indices, commodities, bonds, or securities.
ETFs usually track an underlying Index or other multiple underlying assets.
Just like stocks and Indices, ETFs are traded on the stock exchange market. They are traded all day long and their prices change based on the forces of demand and supply.
Let us clarify with examples of some tradable ETFs which include ETF S&P 500, ETF NASDAQ, ETF Natural gas, and many others.
You can see that ETFs comprise a collection of Indices, securities, bonds, and other components of the stock exchange market rather than a single component like a single stock. As already mentioned, this underlying instrument tracks indices, like the ETF S&P 500 which tracks the S&P 500 Index.
Separating the wheat from chaffs.
ETFs, distinguish themselves from mutual funds in that they are listed on exchange markets and are traded all day long alongside Indices and stocks.
This listing means that ETFs are marketable and are associated with prices for buying and selling.
Mutual funds, on the other hand, are not listed on exchange markets and are not traded throughout the day but once a day after markets close.
As in the definitions, a single ETF can hold so many stocks and Indices belonging to various companies of diverse sectors or even commit to holding stocks of companies of a particular sector only.
Either way, you can see that ETFs will offer diversity and enable investors to diversify their investments in them.
All the stocks and Indices of the many companies carried in one ETF cannot spike at once and so fast as if it were a single stock in question.
This reduces the risk of investing in ETFs because sudden changes are not common and therefore markets usually range providing many profitable opportunities.
If you buy single stocks of a single company and the company is declared redundant, you can only count your losses and regret. However, because ETFs comprise stocks and Indices of very many companies, if one goes bankrupt, you may not even notice because it will be replaced so fast. After all, such a change may not cause any significant price move. This makes ETFs a safer form of investment, or does it?
Investing in Exchange Traded Funds (ETFs) with the Olymp Trade Mobile App.
I know you were about to go spend your day monitoring charts at the National Securities Exchange in order to know which stocks to buy and which to sell. But, is there really a need for leaving your comfort zone to trade?
Can’t one mobile App enable you to do all that at the comfort of your home as you take care of other things as well?
Introducing the Olymp Trade Mobile App for trading ETFs.
What does the App enable you to do as concerns ETFs? A lot I tell you. With the Olymp Trade Mobile App, you can
- Access the ETFs and stock market.
- Have a wide range of ETFs to choose from.
- Monitor the prices of ETFs and any fluctuations.
- Do fundamental analysis using a wide variety of technical and chart analysis tools to predict a fall or rise in ETF prices.
- Execute instant trades at the current market ETF prices.
And you know what?
You can trade these ETFs in both Fixed Time Mode and the Forex Mode! What a convenience!
- ETF MSCI Brazil 2X.
- Natural Gas Reversal 3X.
- ETF U.S Real Estate.
- ETF NASDAQ Reversal 2X.
- S&P 500 Volatility 1.5X.
How does the Olymp Trade Mobile App enable you to Invest in ETFs?
You can start trading ETFs in the following steps: =
- Register on Olymp Trade.
- Download the Olymp Trade Mobile App.
- Log in to the Olymp Trade Mobile App.
- Deposit money into your Olymp Trade Trading Account.
- Choose the ETF to Trade.
- Trade the Chosen ETF.
1. Olymp Trade Registration.
You will only need to provide your email address, set your own password, select a convenient currency, and then agree that you are of legal age. You will then be required to verify your email address and registration will be done.
2. Olymp Trade Mobile App Download.
3. Olymp Trade Mobile App Login.
The login process is very easy;
- Enter the email address used in registration.
- Enter the password set during registration.
- Solve a few simple captchas.
You are logged in.
4. Olymp Trade Money Deposit.
Hit the Deposit button which sits so strategically on the App. Deposit at least $10 to start trading.
Bank Cards, E-wallets, Mobile Money payment methods, and many other payment methods are supported by Olymp Trade.
5. Choosing the ETF to Trade.
Choose the ETF to trade by simply doing the following;
- Log in to the Olymp Trade Mobile App.
- Hit the Assets Button.
- Choose whether to trade Fixed Time or Forex.
- Select ETF from the available buttons.
- Choose the ETF you want to invest in from the list.
- Trading ETFs.
Fixed Time Mode;
- Choose the trade duration.
- Carry out technical or fundamental analysis or both to predict the direction the price is likely to be after the duration you have chosen.
- Place Up or Down Trade based on your prediction.
- Correct prediction at expiry earns you the specified percentage of the invested amount plus your invested capital.
Trading ETFs in the Olymp Trade Forex Platform.
- Carry out technical or fundamental analysis or both to predict the direction the price is likely to move next.
- Select a multiplier and trade size, for example, x50 means that your trade size will have 50 times more power in returns than if invested as it is.
- Adjust your Take Profit which should not be too far or too close from the entry-level.
- Adjust your Stop Loss which should also not be so close or so far from the entry-level. Stop Loss and Take Profit must be set in regard to a reasonable risk to reward ratio.
- Enter Up or Down Trade according to your prediction.
- Wait till your Take Profit is activated to earn the targeted amount of profit.
A simple to trade asset, or is it? Go on and try trading on a demo account.