When you work with exchange traded derivatives (futures and options) you encounter margin level which allows to offset the default risk from counter parties. (more…)

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…)

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…)

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…)

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…)

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…)

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…)

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…)