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…)

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…)

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…)

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…)

Open Interest (OI) - the number of derivative (futures or options) contracts which haven’t expired or  completed in the market by the end of the day. So open interest shows how big is the long and short positions in the market and how much money are in the market. (more…)

Exchange Traded Funds (ETFs) are simple financial instruments comparing to other existing ones. However, a lot of questions appear and not always it is so easy to answer them (as I say there is no stupid question, there is only stupid answers). Therefore I have collected a big piece of what I know about ETFs in this article. I am sure it will be useful, don’t forget to share. (more…)

Operation with bonds and other debt instruments is a big par of investment and short-term speculation operations in the financial markets. Talks about FOREX liquidity are quite simplified. It is difficult to calculate the volume in the World cause it is a spot market and there are question how it is calculated and what is included in it? At the same time it is a fact (cause you can check it) that the 10 year T-note futures contract volume which is traded at eCBOT is $100 billion a day and even more. And this is only one contract! (more…)