The simplest way to calculate return on investments is the calculation of Holding Period of Return (HRP) which is the comparison of expected (or actual) investment value after some time to the initial value of your investment. However Effective Rate of Return is a better way to valuate investments. (more…)
Read the whole »What is and how to calculate Effective Rate of Return?
CFTC and US exchanges position limits
Hello, in order to prevent market price manipulation in futures and options markets Market regulators create market position limits. Knowing these limit may help you understand the market structure (if you look precisely into COT reports), as well as representing a company its a vital data for those who open large position in certain markets. If your position is 25+ or 1000+ contracts (depending on the market) you’ll have to report about your doings to the responsible institution. Such limits exist in many countries (for example, UK) but I will concentrate on US markets. (more…)
Read the whole »Exchange Traded Note (ETN) FAQ
Here you can find answers on the most common questions about Exchange-Traded Notes (ETNs). Also this instrument has a similar name to ETFs, it won’t be wise to think they are equal. Both ETNs and ETFs track an assigned and stated in the prospectus index, both are traded like a stock and many of them are very liquid (depends on the instrument and what do you compare with). The similarities between these two instrument stop there. Yes, they have similarities but not more than that. Find out what is an ETN. (more…)
Read the whole »ETFs vs Stocks
Hello my friends. Exchange Traded Funds are quite an interesting product which became very popular during last decade. The question many beginners ask is whether ETF can be traded like a single stock or not. Although both are traded o a securities exchange they are not the same. (more…)
Read the whole »ETN taxation in United States
Taxation…one of the most ill-favored and complicated topics. However you have to know what you will get after taxes cause it means a lot. One side is the ETF, ETN, mutual fund or any other simple or not instrument performance on paper and another side is what you really get. Let me answer some question and reveal the fog of ETN taxation in U.S. (more…)
Read the whole »More about Exchange Traded Notes. Know the creature you hunt.
The first ETN was introduced in 2006 by Barclays bank (Ipath) and became a good alternative to ETFs. ETNs are debt instruments. This is what you have to understand and always remember, this is what makes it different from ETF the most. ETNs are linked to the performance of a single asset (often commodity or currency) or index (for example, emerging market index). If you buy an ETN you do not won anything, you are a creditor of an ETN issuer (more…)
Read the whole »Exchange Traded Funds (ETFs) vs Exchange Traded Notes (ETNs). Are they alternatives?
Exchange Traded Notes were first implemented only in 2006. Therefore this product is not well known, however it provides some advantages for investors, at the same time it has some specifics which you should know before investing into them. Are ETNs an alternative to Exchange Traded Funds? (more…)
Read the whole »ETFs vs Mutual Funds
ETFs versus Mutual Funds…what is better? you have to decide it yourself, however I answered in a short way top 3 question why ETFs are more interesting investment products comparing to mutual funds. (more…)
Read the whole »ETFs and Taxes. Are they tax efficient?
People use to equalize Exchange Traded Funds (ETFs) and single stocks. But what about taxation? Today I am going to answer some questions regarding ETFs and taxes in US (and other countries). (more…)
Read the whole »Futures and options market participants in cot reports
Futures and options markets where created not for speculation but for risk management purposes. Therefore these markets can be separated into sides: those who manage their risks and those who takes this risks and try to get a premium (profit) for it. Therefore two sides: hedgers and speculators. Most of the traders use only technical analysis, some use only fundamental analysis and spend a lot of time analyzing enormous amount of information. But my (and not only) proposal is to optimize your time and take into account only part of all fundamental information. (more…)
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