{"id":803,"date":"2009-11-12T12:08:19","date_gmt":"2009-11-12T06:38:19","guid":{"rendered":"http:\/\/www.niftylivecharts.com\/blog\/?p=803"},"modified":"2009-11-12T12:09:00","modified_gmt":"2009-11-12T06:39:00","slug":"trading-etfs-basic-order-types","status":"publish","type":"post","link":"https:\/\/www.niftylivecharts.com\/blog\/trading-etfs-basic-order-types\/","title":{"rendered":"Trading ETFs: Basic Order Types"},"content":{"rendered":"<p><strong>Meaning :<\/strong><br \/>\nAn exchange-traded fund (or ETF) is an investment vehicle traded on stock exchanges, much like stocks. An ETF holds assets such as stocks or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of the trading day.<\/p>\n<p>Since exchange-traded funds (ETFs) are bought and sold just like stocks it&#8217;s important to be familiar with the fundamentals of order placement.<\/p>\n<p>When buying or selling an ETF, the quality of your trade&#8217;s execution will be impacted by the type of order you place. A clear understanding of various order types will help you to achieve the results you want.<\/p>\n<p><strong>Market <\/strong><br \/>\nAn order to buy or sell an ETF at the market&#8217;s current best available price.<br \/>\nTypically ensures immediate execution.<br \/>\nOrder may get filled at different prices and times, especially in fast moving markets.<\/p>\n<p><strong>Limit <\/strong><br \/>\nAn order to buy or sell an ETF with a restriction on the maximum price to be paid or the minimum price to be received.<br \/>\nAlso known as the &#8220;limit price.&#8221;<br \/>\nIf filled, your order will only be executed at your specified limit price or better. No assurance of order execution.<\/p>\n<p><strong>Stop Limit<\/strong><br \/>\nCombines a stop order and a limit order to buy or sell an ETF at a specified limit price (or better) only after the stop price has been reached.<br \/>\nIf filled, your order will only be executed at limit price or better.<br \/>\nAlso provides an order entry or exit threshold.<br \/>\nNo assurance of order execution.<\/p>\n<p><strong>Short Sale <\/strong><br \/>\nA trade that involves selling an ETF you do not own because you expect to purchase it back later at a lower price.<br \/>\nA decline in the ETF&#8217;s price provides the potential for a profit.<br \/>\nAn increase in the ETF&#8217;s price could force you to buy it back at a substantially higher price you sold it for, resulting in a loss; your account will accrue margin interest for the amount of time the ETF is borrowed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Meaning : An exchange-traded fund (or ETF) is an investment vehicle traded on stock exchanges, much like stocks. An ETF holds assets such as stocks or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of the trading day. Since exchange-traded funds (ETFs) are [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[2620,2618,2619,2621,2622,2623,2624],"class_list":["post-803","post","type-post","status-publish","format-standard","category-general","tag-bond-etf","tag-etf-funds","tag-etf-trading","tag-exchange-traded-funds-etf","tag-fixed-income-etf","tag-global-etf","tag-list-of-etf","entry"],"_links":{"self":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/comments?post=803"}],"version-history":[{"count":0,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/803\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/media?parent=803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/categories?post=803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/tags?post=803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}