ETFs (exchange-traded funds)
ETF is an abbreviation for "Exchange-traded funds". Here are some tips on trading ETFs.
ETFs are funds that trade like if it were shares. You buy and sell these funds charge.
An ETF (exchange-traded funds) is a fund that is traded through the stock exchange. In the same way as all shares via the stock exchange, one can thus act funds through a stock exchange. The advantage is that you avoid paying commissions directly to the Portfolio Manager of the Fund, and thus saving you a lot of money, but at the same time you get the opportunity to make money on the same return as the fund generates.
How to trade ETF
There are only a handful of brokers who offer trading in ETFs. We recommend that you choose a cheap online broker with a good trading system and specially
Leverage = make more money
Gearing! I love it. When you buy exchange-traded funds via some brokers you can gear your investment by up 1:15-leverage. That means you get the opportunity to earn a lot more money on investment, in exchange for that you are willing to take a higher risk. If you want lower risk, you can choose to not leveraged at all, or invest with a more modest leverage. Where you would normally earned only 1000 dollars, would you earned 15,000 million with a leverage of 1:15, so it pays to leverage if you have a strong and well-founded opinion on future price changes.
Free demo account
Free demo accont and trade at no risk. Finally, we will tell you that your broker has an offer for new customers, where they give you, the trader, an oportunity to trade with a practise account, at no risk or no obligation to trade with your real money later on.
If you manage to "make money" in a demo account, this will not be something you will be able to cash out, as it is just fictional money, but at least you will have learned a bit about how the market works and what it takes to be a trader.
