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You've found the right exchange traded fund (ETF) and you’re ready to buy it. Use these strategies to improve your ETF trading experience.
Aug 17, 2020
Avoid trading around market open and close
Order type
Example: You want to purchase ABC Japanese ETF, which is trading at $25. You set a buy limit order at $24.90. If you set the limit too low, you risk missing the trade in the timeline you want.
Geographic time zones
Example: So what would be a good strategy in this scenario? If trading an ETF with European stocks in the underlying basket, it may be smart to trade when European markets are open (in the morning, if trading from Canada). Any time a market maker can’t buy the underlying stocks in real time, a wider bid-ask spread or greater premiums or discounts to NAV can result.
Liquidity
Large orders
Created by
David Stephenson