Search results “Illiquid etfs for dummies”
Stocks, Indexes & ETFs - What's The Difference?
http://optionalpha.com - There are subtle but importance differences between trading these 3 different types of underlyings. In this quick and short video I'll explain the benefits/drawbacks of each style. In particular we prefer if possible to trade ETFs and Index options because they have much less "tail risk" and are generally more liquid for entering and exiting. ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download a free copy of the "The Ultimate Options Strategy Guide": http://optionalpha.com/ebook ================== Still working a day job? Then our "Take 5" segment is for you. 5 mins videos each day on 1 thing you can apply trading options: http://www.youtube.com/playlist?list=PLhKnvfWKsu40z0EnsX0TNqCgUzb8tmM04 ================== Start our 4-part video course (HINT: these videos are NOT posted anywhere else online): http://optionalpha.com/free-options-trading-course ================== Just getting started or new to options trading? Here's a quick resource page we made that you'll love: http://optionalpha.com/start-here ================== Register for one of our 5-star reviewed webinars: http://optionalpha.com/webinars ================== - Kirk & The Option Alpha Team
Views: 46376 Option Alpha
Key Things to Know about Fixed Income ETFs | Fidelity
Find out more about exchange-traded funds with us at the https://www.fidelity.com/learning-center/investment-products/etf/overview To see more videos from Fidelity Investments, subscribe to: https://www.youtube.com/fidelityinvestments Facebook: https://www.facebook.com/fidelityinvestments Twitter: https://www.twitter.com/fidelity Google+: https://plus.google.com/+fidelity LinkedIn: https://www.linkedin.com/company/fidelity-investments ------------------------------------------------------------------------------------------ Fixed income can be a critical part of nearly every well-diversified portfolio. Used correctly, fixed income can add diversification and a steady source of income to any investor’s portfolio. But how do you choose the right fixed-income ETF? The key to choosing the right fixed-income ETF lies in what it actually holds. U.S. bonds or international bonds? Government securities or corporate debt? Bonds that come due in two years or 20 years? Each decision determines the level of risk you’re taking and the potential return. There are many types of risks to consider with bond investing. Let’s talk more about two in particular: Credit risk and Interest-rate risk. Determining the level of credit risk you want to assume is an important first step when choosing a fixed-income ETF. Do you want an ETF that only holds conservative bonds—like bonds issued by the U.S. Treasury? Or do you want one holding riskier corporate debt? The latter may pay you a higher interest rate, but if the company issuing the bond goes bankrupt, you’ll lose out. ETFs cover the full range of available credit. Look carefully at the credit quality composition of the ETFs underlying holdings, and don’t be lured in by promises of high yields unless you understand the risks. Bonds are funny. Intuitively, you would assume that higher interest rates are good for bondholders, as they can reinvest bond income at higher prevailing interest rates. But rising interest rates may be bad news, at least in the short term. Imagine that the government issues a 10-year bond paying an interest rate of 2%. But shortly thereafter, the U.S. Federal Reserve hikes interest rates. Now, if the government wants to issue a new 10-year bond, it has to pay 3% a year in interest. No one is going to pay the same amount for the 2% bond as the 3% bond; instead, the price of the 2% bond will have to fall to make its yield as attractive as the new, higher-yielding security. That’s how bonds work, like a seesaw: As yields rise, prices fall and vice versa. Another important measure to consider when looking at interest rate risk is duration which helps to approximate the degree of price sensitivity of a bond to changes in interest rates. The longer the duration, the more any change in interest rates will affect your investment. Conversely, the shorter the duration, the less any change in interest rates will affect your investment. Let’s review a few other considerations when looking at fixed income ETFs. First, expense ratios: Because your expected return in a bond ETF is lower than in most stock ETFs, expenses take on extra importance. Generally speaking, the lower the fees, the better. Second, tracking difference: It can be harder to run a bond index fund than an equity fund, so you may see significant variation between the fund’s performance and the index’s returns. Try to seek out funds with low levels of tracking difference, meaning they track their index well. Finally, some bonds can be illiquid. As a result, it’s extra important to look out for bond ETFs with good trading volumes and tight spreads. There are other factors to watch for too, but these are the basics. ETFs can be a great tool for accessing the bond space, but as with anything, it pays to know what you’re buying before you make the leap. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, Rhode Island, 02917 723251.2.0
Views: 63801 Fidelity Investments
Should Investors Be Worried About ETF Liquidity Risk?
Dr. Caitlin Dannhauser, Assistant Professor of Finance at the Villanova School of Business, discusses whether investors should be worried about ETF liquidity risk.
Views: 345 DardenMBA
Why ETFs Are Quickly Becoming a Must-Have Tool for Investors (Explainer Video)
Learn how ETFs deliver markets on demand and are becoming a must-have tool for investors in this animated explainer video from BlackRock's iShares (http://iShares.com). Animated explainer video produced by Wienot Films (http://wienotfilms.com). _________________ BlackRock - iShares - Markets on Demand Animated Explainer Video Investors face an entirely new set of challenges in today’s global markets. Lower return expectations, increased uncertainty, and game-changing regulations are making building portfolios more difficult than ever. At the same time, some markets are becoming less liquid and harder to trade in, putting some opportunities just out of reach. Overcoming these challenges requires a rethinking of how we gain access to investment exposures. Exchange traded funds, also known as ETFs, are a financial technology democratizing access to the global financial markets. ETFs bundle hundreds of securities into standardized and transparent packages that provide exposure to distinct segments of the market. Those packages are then listed and traded on an equity exchange and made available to investors of all types. In this way, ETFs transform asset classes into markets on demand, providing diversified access to broad and narrow exposures in a single trade. They are quickly becoming a must-have tool to pursue opportunities no matter the asset class—whether that’s US equities, investment grade bonds, global equities, high yield bonds, or even emerging market debt. With ETFs, investment ideas can be turned into investment actions. And nowhere is the value of an ETF more apparent than in asset classes that can be inefficient, expensive and opaque, like fixed income. For example, to gain diversified high yield bond exposure, an investor may have to purchase hundreds of illiquid bonds in the over-the-counter market, negotiating with a dealer on the price for each bond in what can be a lengthy and complex trading process. Instead, investors can now buy a single, liquid ETF on a stock exchange to cost effectively gain exposure to high-yield--or just about any other asset class. Simple, fast, and efficient, ETFs can act as investment building blocks to augment existing portfolios or build highly customized strategies from the ground up. That’s why today, ETFs are a technology investors can use to seamlessly buy, own and sell asset classes from around the world of investments. Simply put, ETFs offer markets on demand. Learn more at iShares dot com. [DISCLOSURE] Visit iShares dot com to view a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal. END
Views: 228 Wienot Films
Misconceptions About ETFs That Hold Illiquid Underlying Securities
David LaValle, U.S. Head of SPDR ETF Capital Markets at State Street Global Advisors, discusses common misconceptions of ETFs that hold possibly illiquid underlying securities.
Views: 89 DardenMBA
Option 101 Series - Liquidity
Many people think that option is high risk. Actually, there are option strategy that can limit your risk and allows you to trade in stocks that too expensive for your capital. In this video, I will discuss the details of Liquidity. Liquidity is an important factor when trading option. Options are not created equal. Some are popular among traders and some are not. Normally, popular underlying are more liquid than the unpopular underlying. An underlying is consider liquid when a lot of traders trade the underlying. Disclaimer: This video is not designed to provide financial advice to you or to any other individual. Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. The information provided is for educational purposes only and is not a recommendation or endorsement of any particular investment or investment strategy. The examples used in the video are for illustrative purposes only. Past performance does not guarantee future success. Returns will vary and all investments involve risks, including loss of principal. Yeefong Saw (Mark), this video creator, is not liable for any losses or damages, monetary or otherwise, that result from the content of the video. Yeefong Saw (Mark), this video creator, does not provide tax advice. It is recommended that you consult with a tax advisor regarding your personal tax situation. Asset allocation and diversification do not ensure a profit nor eliminate the risk of investment losses. Carefully consider the investment objectives, risks, charges, and expenses before investing. ETFs can entail risks similar to direct stock ownership, including market, sector, or industry risks. Some ETFs may involve international risk, currency risk, commodity risk, leverage risk, credit risk and interest rate risk. Trading prices may not reflect the net asset value of the underlying securities. Commission fees typically apply. Mutual funds, closed-end funds, and exchange-traded funds are subject to market, exchange rate, political, credit, interest rate and prepayment risks, which vary depending on the type of mutual fund. Fund purchases may be subject to investment minimums, eligibility, and other restrictions, as well as charges and expenses. Certain money market funds may impose liquidity fees and redemption gates in certain circumstances. Mutual funds and ETFs are not FDIC-insured, may lose value and are not guaranteed by a bank or other financial institution. Payment of stock dividends is not guaranteed and dividends may be discontinued. The underlying common stock is subject to market and business risks including insolvency.
Views: 5 Simple Investing
8 Types of Investments You Should Know
Free Beginners Stock Investing Course -- http://bit.ly/2CgSOLH Subscribe For More Videos -- http://bit.ly/2BKP2u4 There are many different types of investments an individual can make, however, not all investments are created equally.  Investment number 1 is a high-interest savings account. This is one of the safest ways to invest your money because there's no volatility. By placing your money in a high-interest savings account, you’re earning annual interest on your money. Now the reason I specifically say “high” interest savings accounts is because typical savings accounts offer little to no interest at all. A typical savings account usually offers around 0.10% while a high-interest account usually offers around 1.3%. Now 1.3% is by no means a high return, but the benefit here is security. You know that when you invest your money in a savings account, you’re guaranteed at least the amount you invested plus the interest earned each year. The second type of investment is a money market account. This is also one of the safest ways to invest your money because there's no volatility. I’m not going to go into too much detail because money market accounts are just another type of high-interest savings account. Although you have access to your funds with a money market account, you typically have less access than with a savings account. With a money market account, the interest rates vary, however, this type of investment usually returns somewhere between 1% and 2%. If you choose a money market account, make sure there are no monthly fees. The third type of investment is a certificate of deposit which is more commonly referred to as a CD. This is also one of the safest ways to invest your money because there's no volatility. A CD is a promissory note from a bank that pays a fixed interest over a specified amount of time. A CD is very similar to a savings account, however, it’s a very illiquid investment, meaning it’s not easily converted to cash. With a CD, investors typically set a maturity date, usually between 1 month and 5 years, which means that the investor will have to pay a penalty fee if they withdraw the money early. The fourth type of investment is a bond. Although bonds are still one of the safest investments you can make, they are just a bit riskier than the previous three. A bond is, in essence, an I Owe You Note issued by the government (local, state, or federal) or corporations. When either a company or the government is looking to fund a new project, they may issue bonds to raise the money. There are a few components to bonds. The bonds face value is the amount of money that was borrowed. The coupon rate is the rate of interest on the face value. The maturity date is when the bonds face value will be paid back to the lender. The fifth type of investment is a mutual fund. A mutual fund is basically a collection of stocks. Mutual funds vary in risk depending on the type of fund, but for the most part, mutual funds are safer than just stocks. Mutual funds are a great option for investors with little cash to invest. Some funds have investment minimums, but others have no minimums. Mutual funds are safer because they are pre-diversified collections of investments. There are many different types of mutual funds such as technology funds, bond funds, real estate funds, energy funds, foreign funds, emerging market funds, and so on. Mutual funds are operated by a fund manager that chooses and maintains the portfolio. The sixth type of investment is an Exchange Traded Fund, also known as an ETF. ETFs are similar to mutual funds, however, they are a bit riskier and are traded on an exchange like stocks. Mutual funds can only be bought or sold at the end of the day at their Net Asset Value (NAV), whereas ETFs can be bought and sold at any point throughout the day. One advantage to ETFs over Mutual funds is that they are more tax advantages. ETFs are a more hands-on investment than mutual funds. The seventh type of investment is a stock which is riskier than ETFs because there is no diversification and it is a very hands-on investment. A stock is a share of ownership of a company. The eighth type of investment is real estate. Now, this type of investment requires a lot of capital, but is a very worthwhile investment. There are two main ways you can invest in real estate: Flipping properties and renting properties. So just to recap, the 8 investments mentioned in this video are some common investments along with their riskiness. If you're a beginning investor, I encourage you to look into each of these investments further to see where you may be comfortable investing your money. In the next video, I’m going to show you the easiest way you can invest your money. I’ll see you then. Social Links: Website: www.wharmstrong.com Twitter: https://twitter.com/wharmstrong1 Facebook: https://www.facebook.com/wharmstrong1/ Instagram: https://www.instagram.com/wharmstrong1/
Views: 13544 Will Armstrong
From Strategy to Industry: The State of ETFs
Bloomberg News reporter, Dani Burger speaks to Bryon Lake Managing Director & Head of International ETFs at JP Morgan, Dennis Dijkstra Co-Chief Executive Officer at Flow Traders, Thomas Merz Head of Distribution Europe, Ex-UK at Vanguard, and Deborah Fuhr Managing Partner & Co-Founder at ETFGI about the state of ETFs at The Future of ETFs in Amsterdam on June 19, 2018.
Views: 53 Bloomberg Live
ETF 101: Liquidity
What is liquidity and why does it matter? To learn more about ETFs, visit www.betashares.com.au/ETFeducation
Liquid Investment or Illiquid Investment? - Entrepreneur Bite #1
What is the difference between a liquid investment and an illiquid investment? The Entrepreneur Bites is a 90-120 second video answering your questions that we have seen in the comments, we will upload as many of these videos as we can handle and still manage to work! Enjoy and remember please leave your questions, subscribe and have a great day. -~-~~-~~~-~~-~- Please watch: "Young Entrepreneurs Making Sales - The Entrepreneur Vlog - Week 46" https://www.youtube.com/watch?v=Q3MSL9jp9N4 -~-~~-~~~-~~-~-
Illiquid Securities: Goldmine... or Graveyard?
Some investors say that small illiquid stocks are the place to be. They've got a point - but you can still lose a lot of money here. Today we go further and explore some things you might not have realized about illiquid securities.
Views: 1137 Curreen Capital
Hedge Fund Replicating ETFs
All Hedge Fund Managers say "thank you for supporting their investment and adding fuel to their short hedge position when unwound in a carry trade. Exchange-traded funds designed to mimic the strategies of hedge funds are mimicking their way into some serious losses of late. Alpha ETF's short and Beta do not. In the investment world there are two kinds of people -- those who want to beat the market, and those who want to be the market. Hedge fund managers are the former, while index fund managers are the latter. But what happens when an indexer wants to track the hedge fund market? You end up with funds bearing wonky, impenetrable-sounding names like the AdvisorShares QAM Equity Hedge (QEH) and AlphaClone Alternative Alpha (ALFA). If you can make it past the jargony horror of the fund names and their strategies, they're a pretty interesting bunch. The AdvisorShares QAM ETF, started last August, uses what’s known as a (you were warned) “beta replication” strategy to mimic the HFRI Equity Hedge Total Index of 1,000 hedge funds. “Attempts” is the key word because unlike a Standard & Poor’s 500-stock index fund, which can buy each stock in its benchmark, ETFs aren’t legally allowed to invest in illiquid hedge funds. What’s more, even if ETFs could do that, many of the best hedge funds in the index are closed to new investors. 400 top-performing hedge fund managers via their quarterly 13F filings with the Securities and Exchange Commission. He then selects 75 of their favorite stocks for the ETF. Another fund with a similar 13F-based strategy, the Global X Top Guru Holdings Index (GURU), also launched last year. Such strategies face a host of obstacles. Securities law allows hedge fund managers to file 13F holdings reports 45 days after the quarter ends. Many wait until the last minute to reveal their portfolios. So most of that information is at least 45 days old, and information on stock buys could be as much as 135 days old if they were bought at the start of the quarter. To counteract this, Jadallah scores each manager’s portfolio based on the persistence of their performance after their holdings are disclosed -- that is, how well their stock holdings continue to perform long after the 13Fs are filed. He has 13F data for managers dating back to 2000, and only the holdings of those funds with top persistence ratings go in the ETF. A potentially bigger problem is that 13F filings don't disclose what hedge funds are shorting or betting against. “You’ve kind of taken the hedge out of the hedge fund strategy if you don’t know what these funds are shorting,”
Views: 481 scottab140
Trading Leveraged ETFs For Max Profits
Trading Leveraged ETFs For Max Profits walks through the risks and benefits of trading these highly speculative 2x and 3x leveraged bull and bear ETFs. ► Subscribe to our YouTube channel: http://bit.ly/2kLE2Pz ORIGINAL ARTICLE LINK which has been updated with new examples, a section on volatility decay, contango impact, and more: http://www.thetraderisk.com/trading-leveraged-etfs-for-max-profits SKIP AHEAD: What are leveraged ETFs? 1:44 How are leveraged ETFs constructed? 3:24 What are the risks of trading leveraged ETFs? 5:09 What are the benefits of trading leveraged ETFs? 13:36 My strategy for trading leveraged ETFs 17:55 Universe of leveraged ETFs 26:00 At The Trade Risk, we help traders make money in the stock market. Learn More: https://www.theTradeRisk.com Newsletter: https://www.theTradeRisk.com/newsletter Trade Alerts: https://www.theTradeRisk.com/swing-trade-alerts Market Dashboard: https://www.theTradeRisk.com/market-health-dashboard Breadth Cycles: https://www.theTradeRisk.com/stock-market-breadth-cycles Follow Us: https://www.twitter.com/evanmedeiros Thank you for watching! #TheTradeRisk #ETFs #LevergedETFs
Views: 22361 The Trade Risk
Should You Invest in Exchange Traded Funds?
There are hundreds of ETFs available. Should you invest in them? Securities offered through Center Street Securities, Inc. (CSS), a registered Broker-Dealer and Member FINRA and SIPC. James Jones is an Investment Advisor Representative with advisory services offered through Center Street Advisors, LLC, (CSA) a SEC Registered Investment Advisor. All other Brookstone Financial Investment Advisor Representatives offer Investment Advisory Services through PMB Capital Management LLC (PMB), a Registered Investment Advisor. Brookstone Financial, PMB, CSS and CSA are independent of one another. To invest in non-traded commercial real estate you must acknowledge that I, (we) either: (i) have a net worth (excluding home, home furnishings and automobiles) of at least $70,000 and estimate that (without regard to investment in the applicable offering) I (we) have gross income due in the current year of at least $70,000; or (ii) have a net worth (excluding home, home furnishings and automobiles) of at least $250,000 or such higher suitability as may be required by certain states and set forth in the “Investor Suitability Standards” section of the applicable Prospectus; in the case of sales to fiduciary accounts, suitability standards must be met by the beneficiary, the fiduciary accounts or by the donor or grantor who directly or indirectly supplies the funds for the purchase of the Shares. Products mentioned carry risk including loss of principal and may be illiquid.
Understanding Fixed Income ETFs: Liquidity Risks, Unique Opportunities
Fixed Income ETFs have exploded onto the market to become one of the fastest-growing areas in the ETF industry. Given the illiquidity of many underlying bonds, these funds can present unique challenges. But as rates bottom out and potentially rebound, Fixed Income ETFs may play a vital role in your portfolio. This session explores the myths and misconceptions, examines their full potential and addresses what role they play in a portfolio.
Views: 151 ETF.com
Broad Indexes - Basics
Lucci explains the strategic use of the SPY (S&P 500 ETF) as an indicator/analysis tool for stock and options trading.
Views: 502 Sang Lucci
Startup Pitch: Cash for Illiquid Stock
Our mission is to improve the way startup employees are paid by unlocking the value of their equity compensation in a way that benefits all key players: the shareholder, the company, and the investor. Employees should have the opportunity to share in the value they create for their company's shareholders. This must be accomplished in a manner that keeps the focus on company growth, the number one priority for all stakeholders. Investors that previously couldn't access late-stage private companies due to investment minimums, can now invest in private growth companies. EquityZen is backed by leading venture capital investors (Dave McClure's 500 Startups, WorldQuant Ventures to name a couple), sovereign wealth funds, family offices, wealth managers, and influential investors from finance, venture, and law firms around the world.
Views: 284 CB Insights
5 Biggest Investment Ripoffs to Avoid ❌(shady scam alert)
Don't get ripped off by these shady investments that are basically scams in disguise. I've seen too many people financially wounded from buying this crap. 😠 There is nothing worse than getting ripped off, losing money to something you shouldn't have bought in the first place. Because someone misrepresented something and sold it to you just to make money. Being a financial advisor, I’ve seen so many people that have bought investments that they shouldn’t have. They didn’t understand it and their advisor sold them something that they didn’t need. Thankfully, you are watching this video and I want to prevent you from being Ripped Off! I am going to highlight the 5 biggest investments to avoid because I don't want you to lose your money. ➡️ 1. Loaded Mutual Funds (A Shares) [1:39] - These are mutual funds that when they are sold the advisor or broker that sold them are going to make a commission for that sell. ➡️ 2. Actively Managed Indexed Funds [6:01] - This is one of the most common investments that people get into when they start investing. ➡️ 3. Non-traded REIT’s [9:51] - REIT’s can be a good investment - but Non-Traded REIT’s are different, the are “Illiquid” meaning you can’t cash out your money until it comes due (which could be 10 years or longer). ➡️ 4. Whole Life Insurance [14:14] - It is not 100% bad, but for the most part investing in whole life insurance is not a good move. Buy a term policy, it is so much cheaper! ➡️ 5. Indexed Universal Life Insurance [19:05] - These policies may make sense if you have maxed out your 401K and Roth IRA. So what is it? It is a policy that is tied to some sort of index, so you are subject to what the index does. You can make a lot of money if you chose to invest wisely. There are so many scams, and so many ripoffs you can avoid. Have you bought one of these investments? Have you been ripped off? Have you bought an investment, that I didn't’ mention, and feel like you’ve been ripped off? 😤 Let me know in the comments. Let me know what you bought and how you got ripped off. ★☆★ Want More Good Financial Cents? ★☆★ 💻 Check out my blog here: https://www.goodfinancialcents.com/ Listen to my podcast here: 🎙 https://itunes.apple.com/us/podcast/good-financial-cents-podcast-investing-building-wealth/id775107294?mt=2 Pick up my best selling book, Soldier of Finance, here: 📗 http://amzn.to/2xOH78V Connect with me on Twitter: https://twitter.com/jjeffrose My most favorite inspiration T-shirt line, Compete Every Day: 👕 https://www.goodfinancialcents.com/compete
Bond ETFs as an alternative source of liquidity | The Asset
Bond ETFs have emerged as an accurate proxy for pricing of illiquid bonds in times of market stress, according to Aleksey Mironenko, director at iShares by BlackRock. Broker dealers “take the price of our ETFs as an accurate reflection of what the cash bonds are worth,” he said during The Asset 2015 ASEAN Bond Markets Summit in Singapore.
Views: 107 The Asset
TradeTalks: Challenges & Opportunities with ETFs
David LaValle, Head of US SPDR ETF Capital Markets of SSGA, sits down with Jill Malandrino, Global Markets Reporter, at the Nasdaq MarketSite. August 15, 2018. Follow #TradeTalks on Twitter Twitter: @Nasdaq @JillMalandrino Facebook: @Nasdaq @JillMalandrino SUBSCRIBE to the Weekly #TradeTalks Newsletter: http://bit.ly/2yevQmn
Views: 136 Nasdaq
What are liquid and illiquid assets?
What are the considerations and implications when holding liquid and illiquid assets in a portfolio. Recorded on 14 August 2014. The Association of Investment Companies (AIC) represents investment companies, investment trusts and Venture Capital Trusts. We help our member companies deliver better returns for their investors. We provide investment company guides, information, performance data and news to people interested in finding our more about investment companies. Visit the AIC website: www.theaic.co.uk Follow us on Twitter: www.twitter.com/aicpress Find us on LinkedIn: www.linkedin.com/company/5377029
Liquid Vs. Illiquid Options Trading: How To Tell
When it comes to options trading liquidity is super important. A lot of beginning traders don't know the difference or why it even matters. In this video we walk you through some of the basics and what indicators to look for when trading options on a stock. Join US vs HERD's free options trading group: http://bit.ly/UVHFreeOptionsGroup Follow and listen to our Spotify playlist: http://bit.ly/WorkEthicPlaylist Connect with Nick — Twitter: https://twitter.com/NickDChow Instagram: https://www.instagram.com/nickdchow Connect with US vs HERD — Twitter: https://twitter.com/USvsHERD Instagram: https://www.instagram.com/usvsherd Facebook: https://www.facebook.com/USvsHERD Web: https://usvsherd.com options trading strategies options trading explained options trading basics options trading for beginners
Views: 235 US vs HERD
Managing Volatility with Liquid Alternative ETFs
2016 got off to a rocky start, but markets have been resilient and are once again touching all-time highs. However, threats remain and markets can turn without notice. How can investors better insulate their portfolios from global economic uncertainty and the divergence of central bank policies? Join Inside ETFs as we sit down with Charles Reinhard of New York Life/Mainstay Investments and Sal Bruno, CIO of IndexIQ for an in-depth look at market volatility and how to manage it. This 60-minute webinar will focus on the different types of market volatility, the driving forces behind each, and actionable portfolio solutions.
Views: 52 ETF.com
Watch Me Buy SPY ETF On ETrade! - Talk About Bid Ask Spread - Discussion About Arbitrage
Watch me buy SPY ETF on ETrade! An ETF is an exchange traded fund. Similar to a mutual fund except it trades throughout market hours as opposed to once a day like a mutual fund. We are going to talk about the bid ask price (or spread). Why does a larger spread mean an illiquid asset and a tighter spread means a more liquid asset? We will talk about arbitrage mergers and acquisitions and their buying opportunities. Go to this site to see pending mergers for arbitrage opportunities: http://www.mergerinvesting.com/pendingmergers ----------------------------------------------------------------------------------- My idea is to put $100,000 of my own money into Etrade and show you step by step of everything I do. Please like, comment and subscribe. I will (i) buy stocks, (ii) sell stocks, (iii) buy ETFs, (iv) sell ETFs, (v) buy Mutual Funds, (vi) sell Mutual Funds, (vii) purchase call options, (viii) sell call options, (ix) buy puts, (x) sell puts, (xi) straddling, (xii) buy short, (xiii) sell short, (xiv) etc. I will also go through Etrade and other websites to talk about the basics of stocks and other financial instruments. I will show you my analysis on buying and selling. We will discuss PE Ratio, Dividend, Beta, Alpha, Market Cap, EBIT, EBITDA, and much more. About me: I graduated college in 1998 with a Bachelors (I paid 100% of the tuition). I worked on wall street for 13 years. I got my MBA during that time (my company paid 100% of the tuition). I started my own company in 2012. The company has been very successful. I work only 20 hours a week. I think of myself as a serial entrepreneur. I am always looking to invest and develop new and existing businesses. Any ideas? When I was in 3rd grade my friends would buy packs of baseball cards for 25 cents. I would buy and entire box which equates to 18 cents a pack and sell my friends a pack for 22 cents. I earned my first year of college tuition playing 3 hours of Blackjack in Atlantic City. I have a lot more stories like this. Please like, comment and subscribe. -------------------------------------------------------------------------------------- Win money every Tuesday and Friday. Watch me scratch off California instant lottery scratch card tickets. You may even win money watching me scratch off instant lottery tickets. The tickets I scratch off are in denominations of $1, $2, $5, $10, $20 and $30. I usually scratch off $5, $10 and $20 instant lottery tickets. I sometimes scratch off lottery tickets sent in by my subscribers or other YouTube channels. You can send me fan mail by sending it to the below address. You can mail me instant lottery scratch card tickets or anything you like. I will make a video for you and all winnings on the instant lottery scratchoff tickets will go back to you. You can also send money via paypal and I will use that money to buy California instant lottery scratchoff tickets. I will make a video scratching off those tickets and all of the winnings will go back to you. PLEASE LIKE, COMMENT AND SUBSCRIBE!!! -------------------------------------------- Email address: [email protected] Paypal email: [email protected] Facebook Page: https://www.facebook.com/funubergames1 Twitter: https://twitter.com/funubergames ---------------------------------------------- Fan Mail: Fun Uber Games PO Box 6337 San Rafael, CA 94903
Views: 228 Fun Uber Games
Barry Silbert: Illiquid Assets are Like Baseball Cards
SecondMarket Founder and CEO Barry Silbert held a number of jobs in banking before starting his own company. However, trading baseball cards as a child gave him the most profound preparation for understanding illiquid assets and inefficient markets. View more clips and share your comments at http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2699
Views: 385 Stanford eCorner
ETF's: Use the right tool!
First published in Automated Trader Magazine Q3 2010: http://www.automatedtrader.net/articles/sponsored-articles/50703/etfs-use-the-right-tool Planning to trade ETFs with ordinary stock algos? Don’t. While ETFs may be marketed as a basket of securities that are as tradable as their individual constituents, their actual trading behaviour is very different. Gary Stone, Director of Trading Research and Strategy and Ron Taur, Head of Algorithmic Trading, at Bloomberg Tradebook explain the difference in cold hard numbers.
Views: 283 automatedtradertv
Side Pocketing क्या होता हैं? Segregated Portfolios क्या होते हैं? | Mutual Funds Explained in Hindi
A side pocket is a type of account utilized in hedge funds to differentiate illiquid assets from more liquid investments. Once an investment enters a side pocket account, only the present participants in the hedge fund are entitled to a share of it. Future investors will not receive a share of the proceeds if the asset's returns get realized. Join our MemberShip Program for Exclusive Research Content: https://www.youtube.com/channel/UCPohbSYq4IXhv0yxiy-sT4g/join Make your FREE Financial Plan today: https://investyadnya.in/login Yadnya Book - 108 Questions & Answers on Mutual Funds & SIP - Available here: Amazon: https://goo.gl/WCq89k Flipkart: https://goo.gl/tCs2nR Infibeam: https://goo.gl/acMn7j Notionpress: https://goo.gl/REq6To Find us on Social Media and stay connected: Facebook Page - https://www.facebook.com/InvestYadnya Facebook Group - https://goo.gl/y57Qcr Twitter - https://www.twitter.com/InvestYadnya #InvestYadnya #YIA #MutualFunds
What is Side Pocketing or Segregated Portfolios in Debt Funds? | Mutual Funds Explained
A side pocket is a type of account utilized in hedge funds to differentiate illiquid assets from more liquid investments. Once an investment enters a side pocket account, only the present participants in the hedge fund are entitled to a share of it. Future investors will not receive a share of the proceeds if the asset's returns get realized. Join our MemberShip Program for Exclusive Research Content: https://www.youtube.com/channel/UCPohbSYq4IXhv0yxiy-sT4g/join Make your FREE Financial Plan today: https://investyadnya.in/login Yadnya Book - 108 Questions & Answers on Mutual Funds & SIP - Available here: Amazon: https://goo.gl/WCq89k Flipkart: https://goo.gl/tCs2nR Infibeam: https://goo.gl/acMn7j Notionpress: https://goo.gl/REq6To Find us on Social Media and stay connected: Facebook Page - https://www.facebook.com/InvestYadnya Facebook Group - https://goo.gl/y57Qcr Twitter - https://www.twitter.com/InvestYadnya #InvestYadnya #YIA #MutualFunds
XRP Fake Market Cap + Volume | CBOE Bitcoin ETF Delay
Book your OWN session with me at: http://btcsessions.ca/ Grab some BTC Sessions merch: https://teespring.com/stores/btcsessions CBOE Pulls application for VanEck SolidX Bitcoin ETF. The government shutdown has employees of the SEC currently out of work, causing the CBOE bitcoin etf to be tabled and re-submitted at a later date. https://www.bloomberg.com/news/articles/2019-01-22/bitcoin-bottom-signal-reemerges-as-price-approaches-oversold Lightning Network Doubling Altcoin Volumes - according to Bitrefill's John Carvalho, despite only being added recently and still having limited onboarding options, lightning payments on the site typically more than double that of their altcoin payments. https://bitcoinist.com/lightning-network-bitcoin-altcoins-obsolete/ XRP Market Cap massively understated, volume suspected to be faked. A report from Messari makes outlines the case for the XRP market cap to be skewed due to illiquid funds and wash trading on overseas exchanges. https://www.coindesk.com/xrp-market-cap-may-be-overstated-by-billions-messari-report-estimates https://messari.io/ If you value my work and would like to send me a tip, they are always appreciated! BITCOIN 3NZjB2Fkz6FzHtqDsxJEdWVeeFQfSttK9X LIGHTNING lnbc1pwr8whppp5dj72rpekxzuw5u4898exvjypgzfzf28h67ny0dxjr9jh6g9j6qcsdqu2askcmr9wssx7e3q2dshgmmndp5scqzysxqrrss25ssxus52hvr9fnwsjtvgk376euns37pgnqhu2ss0gegtesmhl2jn2xer0hm4ngqry8s04qtdfpqtsyf3vjr0rs4ahgs7lpxj6u2xycqt7z9zw PAYNYM +polishedband886
Views: 713 BTC Sessions
Trading Illiquid Options 10.7.2013
Like and Subscribe! Visit us at KeeneOnTheMarket.com Follow us on Twitter: @KeeneOnMarket Facebook: facebook.com/keeneonthemkt Like and Subscribe! Visit us at KeeneOnTheMarket.com Follow us on Twitter: @KeeneOnMarket Facebook: facebook.com/keeneonthemkt
Views: 637 AlphaShark Trading
Bitcoin ETF: Wall Street’s Path to Crypto | Cointelegraph Documentary
The prospects of a Bitcoin ETF coming to market have not only crypto enthusiasts psyched, but Wall Street as well. Even though the term ETF — i.e., exchange-traded fund — is often talked about, we wanted to delve into the mechanics behind it in order to get a better understanding of the potential impact it might have. We interviewed an ETF consultant, an ETF applicant, a professor of finance and even a commissioner at the Securities and Exchange Commission to get the whole picture and to try to answer the question, could a Bitcoin ETF be a game changer? Richard Keary — ETF Consultant and founder of Global ETF Advisors LLC Gabor Gurbacs — Digital Asset Strategist/Director at VanEck David Yermack — Professor and Chair of the Finance Department at NYU Stern School of Business Hester Peirce — SEC Commissioner #Cointelegraph #Bitcoin #ETF Subscribe to Cointelegraph: https://goo.gl/JhmfdU Follow COINTELEGRAPH: Website: https://cointelegraph.com/ Telegram: https://telegram.me/thecointelegraph Facebook: https://www.facebook.com/cointelegraph Twitter: https://twitter.com/cointelegraph Cointelegraph covers everything Bitcoin, bringing you the latest news, prices, breakthroughs, and analysis, with emphasis on expert opinion and commentary from the digital currency community. Bitcoin ETF: Wall Street’s Path to Crypto | Cointelegraph Documentary
Views: 7813 Cointelegraph
Liquid Versus Illiquid Alternatives
Sandy Bolton, Pershing's Managing Director of Financial Solutions, lays out the reasons clients might be better suited for liquid or illiquid alternatives on InvestmentNews.com. Visit Pershing.com for more information about Pershing's Alternative Investment Solutions.
Oil Traders Words explain Liquid and Illiquid markets
Oil Traders Words explain Liquid and Illiquid markets 5% Discount code OILYT at www.oiltraderswords.printtrail.com
Views: 42 Stefan van Woenzel
The Big Short (2015) - Mark Baum (Steve Eisman) Meets a CDO Manager [HD 1080p]
FrontPoint Partner Mark Baum (Based off of Steve Eisman) meets CDO manager who manages on behalf of Merrill Lynch. The meeting quickly turns confrontational as Baum discovers the ugly reality of the CDO market. From The Motion Picture - The Big Short (2015)
Views: 3049830 Extractor
Ian Cassel | The Best Performing Investments Are Small-Cap Companies Under $114M Market Cap
Ian Cassel is a full-time microcap investor and founder of MicroCapClub, the MicroCap Leadership Summit, and co-founder of the Intelligent Fanatics Project. Ian started investing as a teenager and learned from losing his money over and over again. Today he is a full-time private investor that supports himself and his family by investing in microcaps. In this interview, Ian shares regarding his approach to investing, his successes and failures as a microcap investor, and why investors should consider focusing their investing efforts on microcap companies. 0:05 Introduction 2:04 How Ian got started in microcap investing 10:45 What is the MicroCapClub? 15:10 Ian discusses the thesis of why someone would want to invest in microcaps 21:38 Ian breaks down his one-sentence investment strategy word-by-word: “My goal is to own the smallest, most illiquid, least institutionally owned, misunderstood businesses I can find that are run by intelligent fanatics.” 36:15 Ian’s past and current investment experience with junior mining stocks 38:57 Does Ian’s strategy work for pre-revenue companies with no cash flow such as most junior miners? 42:50 The main differences Ian sees in US microcap equities vs Canadian microcap equities 46:20 Cautionary advice regarding accessing initial capital to get started in microcap investing Sign up for our free newsletter and receive interview transcripts, stock profiles and investment ideas: http://eepurl.com/cHxJ39 The content found on MiningStockEducation.com is for informational purposes only and is not to be considered personal legal or investment advice or a recommendation to buy or sell securities or any other product. It is based on opinions, SEC filings, current events, press releases and interviews but is not infallible. It may contain errors and MiningStockEducation.com offers no inferred or explicit warranty as to the accuracy of the information presented. If personal advice is needed, consult a qualified legal, tax or investment professional. Do not base any investment decision on the information contained on MiningStockEducation.com or our videos. We may hold equity positions in and/or be compensated by some of the companies featured on this site and therefore are biased and hold an obvious conflict of interest. MiningStockEducation.com may provide website addresses or links to websites and we disclaim any responsibility for the content of any such other websites. The information you find on MiningStockEducation.com is to be used at your own risk. By reading MiningStockEducation.com, you agree to hold MiningStockEducation.com, its owner, associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.
Selling and Illiquidity
I created this video using my Logitech QuickCam software
Views: 112 Matt Davio
Making sense of liquid alternative strategies
Senior Portfolio Manager Dana Meissner discusses important considerations for investors seeking an alternative approach. Views as of 11-4-2015. For disclosure, visit http://bit.ly/FederatedYouTube. For more information, visit http://www.federatedinvestors.com.
Views: 2985 FederatedInvestors
Introducing Franklin LibertyShares™: ETFs Built on the Human Factor™
In this video, David Mann, Head of Global ETFs and Capital Markets, explains why Franklin Templeton has entered the active and strategic beta ETF space – and outlines the specific factors that set our strategic beta ETFs apart.
Prof. Yakov Amihud Discuss: Do ETFs Increase Volatility?
Discussion on the paper "Do ETFs Increase Volatility?" at The Rothschild Caesarea Center 11th Annual Conference, IDC, Israel
Views: 977 IDC Herzliya
Traders do not trade illiquid stocks
Traders do trade most of the time, but they absolutely do not trade illiquid stocks. At least, they are not supposed to...
Views: 57 Angelo Michel
A new method for modelling liquidity in light of the financial crisis
Andros Gregoriou, Professor of Finance, presented his inaugural lecture on Wednesday 21 October 2015 entitled A new method for modelling liquidity in light of the financial crisis.
Why do some Hedge Funds Fail?
Why do some Hedge Funds Fail? Dr. Corvin Codirla, Ph.D. comments. Most hedge funds fail due to outsized positions; not managing to get out because markets become very illiquid and very dysfunctional. So its a combination of hedge fund managers taking too much risk.
Views: 2591 UKspreadbetting
Invest for less with Ally Invest
For years investing has been over-priced. That’s not right. Now you can trade for as low as $3.95 with Ally Invest. Better is out there. Learn more at Ally.com.
Views: 89524 Ally
Risk From Illiquid Stocks
http://djellala.net Email [email protected] Risk From Illiquid Stocks If you are looking seriously to become a swing successful trader, you are in the right channel. This channel is devoted to all traders who want to learn trading with simple and easy strategies. There is no indicators and no moving averages here. All what you do is follow the uptrends in stocks. As usual if you have any questions or inquiries about any information in our channel or our training, let us know by writing to [email protected] or commenting here on the videos. Please go ahead and click any link you want to know more. Free Training https://gumroad.com/l/PYkDh/freetraining Subscription Membership https://gumroad.com/l/EcqeL Training Levels by Videos Training Level 1 Djellala Swing Trading Strategies Basics https://gumroad.com/l/qDRM/march2016 Training Level 2 How to Search for Stocks Using Stock Screener https://gumroad.com/l/Eyjykz/march2016 Training Level 3 How to Search fro Stocks Using Industries https://gumroad.com/l/UFztD/march2016 Training Level 4 How to Select Stocks? https://gumroad.com/l/gMZbf/march2016 Training Level 5 How to Make Money from Stock? The Magic Formula https://gumroad.com/l/iWXI/march2016 Training Level 6 How to Protect your Trades Using a Stop Loss? https://gumroad.com/l/RcZZ/march2016 Training Level 7 How to Follow an Uptrend and Exit on Time? https://gumroad.com/l/tKjgH/march2016 Training Level 8 How to minimize risk and maximize profits? https://gumroad.com/l/PvAn/march2016 Training Level 9 Exceptions to the Trading Rules https://gumroad.com/l/eYigU/march2016 Training Level 10 How to Trade Penny Stocks the Right Way? https://gumroad.com/l/IcvKS/march2016 Training Level 11 How to Sell Short a Stock? https://gumroad.com/l/kgFTK/march2016 Training Level 12 How to Day Trade Using Candlesticks and the Chart? https://gumroad.com/l/Uxfm/march2016 Training Level 13 How to Buy from the Support Line? https://gumroad.com/l/Ieez/march2016 Training Level 14 How to Trade Call and Put Options? https://gumroad.com/l/BnsxS/march2016 Training Level 15 Trade Less than a Week Using Candlesticks https://gumroad.com/l/cTyy/march2016 Training Level 16 How to Invest Using Dividend? https://gumroad.com/l/eWbAH/march2016 Training Level 17 How to Fix Your Trading Problems? https://gumroad.com/l/ROzqx/march2016 Training Level 18 How to Short the Whole Market? https://gumroad.com/l/Yvhp/march2016 Training by Ebooks - PDF files How to Buy a Stock From the Resistance Line? https://gum.co/xHtRn/july2016 How to Buy a Stock from the Support Line? https://gum.co/rrEOP/july2016 How to find Good Penny Stocks In Less Than a Minute? https://gum.co/gJBTK/july2016 How to Buy a Stock on Time? https://gum.co/xCpZ/july2016 How to Sell Short a Stock the Easy Way? https://gum.co/uvhi/july2016 Training Level 2: How to Search for Stocks Using Stock Screener? https://gum.co/uPBfs/july2016 Training Level 3: How to Search for Stocks Using an Industry Index? https://gum.co/ALbzW/march2016 Training Level 4: How to Select Stocks? https://gum.co/lebUE/july2016 Training level 16: How to Invest In Dividend Stocks? https://gum.co/rXqo/july2016 Training level 6: How to Calculate the Stop Loss: The Most Effective Ways and Strategies to Protect your Trades? https://gum.co/xBout/july2016 Training Level 17 How to Fix Your Trading Problems? https://gum.co/CkCsI/july2016 Training Level 18 How to Short the Whole Market? https://gum.co/ciSa/july2016 Training Course and Lessons http://www.djellala.net/ Facebook https://www.facebook.com/makemoneytradingstocksfanpage twitter https://twitter.com/istockmoney VISIT OUR WEBSITE http://makemoneytradingstocks.net/
How to invest in Frontier Markets
What do I do? Full-time independent stock market analyst and researcher: https://sven-carlin-research-platform.teachable.com/p/stock-market-research-platform Check the comparative stock list table on my Stock market research platform under curriculum preview! I am also a book author: Modern Value Investing book: https://amzn.to/2lvfH3t More about me and some written reports at the Sven Carlin blog: https://svencarlin.com Stock market for modern value investors Facebook Group: https://www.facebook.com/groups/modernvalueinvesting/ Frontier markets are very illiquid, volatile and politically unstable. However, this just means there will be more opportunities for those who know what they are doing. I describe frontier markets, the risks and the opportunities they offer for shrewd investors. I describe my investing strategy that has lead me to extremely positive returns in the past.
Bond ETFs in Stressed Markets
Adding liquidity in volatile times. Subscribe to the iShares ETFs YouTube Channel and watch our timely and informative videos about Exchange traded funds (ETFs), some of the fastest-growing . When Junk Bonds and stocks correlate, it's bullish. When they go in opposite directions, it's a very important warnings. If you enjoyed the analysis in this video, . This video introduces ETFs and explains the advantages of using them to invest in bonds. In my opinion ETF's are the best way to get exposure to the bond .
Views: 79 Ila Damog
Louis Gave: Bond Market Liquidity Is the New Leverage
Louis-Vincent Gave, Founding Partner & Chief Executive Officer at Gavekal Research, explains to FS Insider the impact a corporate debt downgrade will have on the markets when debt to GDP levels are extremely high and investors own large amounts of passive bond ETFs. Louis says he is frightened by a scenario that could play out in emerging markets and also cites reasons to doubt continued strength in the world's largest economy. To listen to this full interview with Louis Gave or to gain access to all our premium FS Insider podcasts with leading financial and economic experts, visit https://www.financialsense.com/subscribe To find out more about Gavekal Research, visit https://research.gavekal.com/research
Views: 1721 Financial Sense
Top 3 Mortgage Backed Securities (MBS) ETFs (MBB, MBG)
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Investors have become increasingly interested in mortgage backed securities (MBS) since the turn of the century, and exchange-traded funds (ETFs) are a preferred means for accessing the MBS market. An MBS is developed by restructuring a collection of illiquid loans into a single tradeable security. The securities are rated by the quality of the credit attached to the underlying pool of loans. Coupons are assigned based on the loan ratings, with lower-rated securities having higher coupons to attract investors successfully. Typically, MBS are guaranteed by government-sponsored enterprises, including Ginnie Mae, Fannie Mae and Freddie Mac. They are referred to as pass-through securities because an intermediary passes through payments from the issuer to the security holders. The demand for real estate has made a convincing turnaround since the 2008 financial crisis, with February 2015 being the second most profitable month for home sales since 2008 and showing the first year-over-year price increase since November 2010. As interest rates remain low, there will likely be substantial increases in demand for mortgage loans, resulting in the establishment of more asset-based securities, potentially increasing the pool of high-quality assets in this investment category. The iShares Barclays MBS Bond ETF The iShares Barclays MBS Bond ETF (NYSE Arca: MBB) is a good option for investors looking to invest in fixed-rate mortgage pass-through securities issued by the Federal National Mortgage Association (FNMA), the Government National Mortgage Association (GNMA) or the Federal Home Loan Mortgage Corporation (FHLMC). The fund aims to provide investors with results that track the performance of the Barclays U.S. MBS Index. The pass-through securities comprising the underlying index have 30-, 20- and 15-year maturities. Along with fixed-rate mortgages, the index also includes hybrid-type adjustable rate mortgages. MBB has total assets of $7.3 billion. The 2015 five-year return is approximately 12.7%. The fund is medium-risk. Its expense ratio is 0.27%, and it has a 1.75% dividend yield. The fund's holdings have an average yield to maturity of 2.22% and a weighted average maturity of 4.7 years. The SPDR Barclays Capital Mortgage Backed Bond ETF The SPDR Barclays Capital Mortgage Backed Bond ETF (NYSE Arca: MBG) is a good fit for investors seeking above-average yields in return for accepting a slightly higher (still relatively moderate) level of risk. The dividend yield for this fund is 3.88%, almost twice the yield of MBB. MBG attempts to provide investors with investment results that mirror the performance of the Barclays U.S. MBS Index, excluding fees. The index is a benchmark metric for the performance of investment-grade U.S. agency mortgage pass-through securities. The securities are backed by pools of mortgages and are issued by government-sponsored entities such as FHLMC, GNMA and FNMA. This State Street fund has an asset base of approximately $1.
Views: 48 ETFs
Liquidity: Building Blocks of Options Trading
Options involve significant risks and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options (https://www.theocc.com/about/publicat...) before investing in options. Liquidity is an essential element when selecting an option strategy. Learn more about what liquidity is, and why it matters, on this episode of Swim Lessons. For more trading education, watch Swim Lessons weekdays at 10AM CT on www.tdameritradenetwork.com
How Bitcoin Futures Will Affect Price
Bitcoin futures launch tomorrow (Dec. 10) on CBOE and on December 18th for CME Group. Many people speculate that the cause for Bitcoin's run-up recently is over anticipation for these Bitcoin futures. In this video, I discuss the potential impact of futures on Bitcoin's price. First and foremost, I suspect liquidity will be lower than expected. The target group for Bitcoin futures are institutional investors and wealthy individuals, both of which tend to be more cautious. Given the warnings from FIA, Interactive Brokers and many others, these larger investors will likely be more reserved until the first expiration occurs and they have some experience watching the volatility in the futures themselves. I did a brief explanation of cash-settled futures in the video, but I'd recommend you seek other sources to flesh out your understanding further. For example, I accidentally implied that the initial margin & mark-to-market process is done based off the spot price rather than the settlement price. The explanation I gave in the video is good enough for laymen, but if you want to trade these, then you'll want to do some serious reading. I might do a video showing how to actually trade them in the future and get more technical. The initial margin requirements are already high for Bitcoin and might increase depending on volatility. Certain brokers are already implementing higher than required initial margin requirements and are forbidding their clients from going short. Maintenance margin requirements will likely be in flux as well. Price limits might be tested more frequently than anticipated, leading to a choppy futures market which then screws with the underlying spot market. All of this is to say that many investors will wait before pumping significant amounts of capital into this nascent asset class. Given this, I suspect this might be a "sell-the-news" type event and we might experience a correction following the CME Group futures launching if there are difficulties associated with their clearing. Note that CME Group has much higher contract volume than CBOE, so the CBOE futures launch will likely be more useful as an indicator of what to expect when CME launches. I also forgot to note in the video that CME Group contracts are for 5 Bitcoin, which may have confused some of you when I said the initial margin requirements would be exceptionally high for CME Group options despite the fact they are going with lower initial margin requirements (35% vs. 44%) as a percentage of the contract value. In the long-term, futures are excellent news for Bitcoin. They increase liquidity in a somewhat illiquid market, will decrease pricing inconsistencies (arbitrage), improve price discovery, and reduce volatility. The short-term will see volatility rise (likely) due to leverage, but this effect should reduce over the following months. Ideally, this opens the door for a Bitcoin ETF down the road as well. Eventually, more institutional investors will jump in as risk declines - but this will be a delayed effect (in my opinion) rather than an immediate one. I would love to hear your thoughts. Let me know in the comments below and thank you for watching! ================ If you like my content, you can support me through using ANY of the affiliate links below (I receive small compensation). The beauty of affiliate links is that I can pick and choose what I like rather than have companies approach me - everything I linked below (with the exception of Trezor since I like Ledger), I use myself frequently. ================ My Recommended Hardware Wallets: Ledger Nano S (Preferred): http://amzn.to/2hZPj0q Trezor: http://amzn.to/2AxD9TN Ledger Blue (expensive): http://amzn.to/2hk7xst ================ My Favorite Book for Investing in Crypto: Cryptoassets: http://amzn.to/2zKDdCF Comprehensive book for both beginners and experts for investing into Bitcoin & cryptocurrencies, filled with historical information and forward-looking analysis. More investing-oriented than tech. ================ My Recommended Exchanges: Coinbase / GDAX / Bittrex https://www.coinbase.com/join/5a08b12e305a1401d79d10e0 If you sign up to Coinbase using link above, you and I will both receive $10 each after you buy your first $100 of Bitcoin using Coinbase. Coinbase is much less intimidating for beginners. Once ready, move up to GDAX for cheaper or zero fees. For altcoins, I recommend Bittrex. ================ Legal Stuff: I am a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for me to earn fees by linking to Amazon.com and affiliated sites. None of what I provide in my videos is investment advice. Please do your own due diligence. ================ My Platforms: Twitter: https://twitter.com/Truth_Investor SteemIt: https://steemit.com/@cryptovestor Medium: https://medium.com/@Truth_Investor Seeking Alpha: https://seekingalpha.com/author/truth-investor/articles
Views: 148286 Truth Investor