Using ETFs in active trading

TradingPub Admin | April 18, 2013

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One piece of stock trading education that can help you invest effectively involves using exchange-traded funds (ETFs) as a part of active trading strategies in order to gain exposure to the securities and attempt to the beat the market.

ETFs are financial instruments that provide the buyer with exposure to a bundle of assets, and you can derive many benefits from using them. Since these securities generally track broader indices such as the benchmark S&P 500 Index or the Dow Jones Industrial Average, you can use them to more easily obtain exposure to the entire stock market than you could by purchasing individual shares of stock.

Think that the S&P 500 Index had a bad day? The ability to use these funds to quickly move in and out of positions can also help you to capitalize on such price movements to gain exposure to the entire group of stocks with a single transaction. Think emerging market stocks are cheap? You can use ETFs to take advantage of these situations as well. 

If you want quality stock trading education, it available through TradingPub, home to some of the top investors and traders in the industry.