How to buy on exchange funds Hands on tutorial on how to buy and sell on exchange funds

Mondo Finance Updated on 2024-02-01

What does the field mean?

The exchange mainly refers to the trading on the exchange, and the common types include ETFs (exchange-traded open-ended index**) and LOF (listed open-ended**).

The trading method of the exchange is similar to that of the exchange, and investors can buy and sell on the exchange by entrusting a broker.

One of the major features of the market is that there is a direct counterparty, i.e., the shares that are sold or sold are actually bought from other investors in the market, or given to other investors.

In addition, the trading operations of the exchange** are mainly "buying" or "selling", which needs to be distinguished from the redemption behavior of the over-the-counter**.

For on-exchange trading, investors need to specify the number of orders to buy and sell (market order), or only the quantity to be bought and sold (limit order), which will change in real time.

As for the on-exchange ** (i.e. new issuance) of the initial offering, it needs to be "subscribed", but its subscription path is different from that of the over-the-counter**.

What's included** in the venue?

The exchange** mainly includes ETF (exchange-traded open-ended index**), LOF (listed open-ended**), closed-end ** and graded**.

etfIt is a kind of trading on the exchange, and its characteristic is that the way of subscription and redemption is not cash, but in the form ofBasket**to proceed.

For example, if the position of an ETF is 20,000 shares of Ping An of China and 10,000 shares of Gree Electric Appliances, and the ratio of the two is 2 1, then if you want to subscribe, the smallest unit is "2 hands of Ping An of China and 1 hand of Gree Electric Appliances", and the 3 lots will be handed over to the ** company, and the ** company will give you the corresponding shares.

lofIt is an open-ended ** that can be subscribed and redeemed in the over-the-counter market, as well as bought and sold on the exchange.

Its main feature is that it increases the flexibility of trading, and investors can choose the trading method according to market conditions and their own investment needs.

Enclosed**withGrading**There are relatively few transactions in the market, of which closed-end transactions are mainly carried out in the secondary market, while grading ** divides one into two parts, high-risk and low-risk, to meet the needs of different investors.

、How to buy ** in the field?

The steps to purchase an in-market** are as follows:

First of all, you need:Open a ** account

You can choose your favorite ** company or broker, and submit the identity documents and relevant information required to open an account in accordance with its regulations.

Usually, you can go to the company's business outlets or apply for an account opening.

After successfully opening an account, it is required:Deposit funds into the ** accountin order to make a transaction.

You can transfer funds to ** account through bank transfer, Alipay, WeChat payment, etc.

Next, you'll need to enter what you want to buy in your trading softwareand the number of purchases

For ETFs and other types of on-exchange**, investors can also choose to subscribe and redeem for trading.

Factors to consider when selecting an in-market** include the underlying indexInvestment valuewith** Liquidity

The value of an investment is mainly based on the quality of the index it tracks, while liquidity can be assessed by looking at the average daily turnover.

It is important to note that in order to protect the interests of investors, the company will require you to complete a risk assessment and investor suitability certification.

These procedures are designed to determine your investment experience and risk tolerance, ensuring that the product you choose** is in line with your investment objectives and risk appetite.

In addition, the investment value mainly depends on the quality of the index tracked, while the liquidity can be assessed by looking at the average daily turnover of the index.

Generally speaking, the larger the turnover in the market**, the better the liquidity.

Finally, when choosing the best varieties in the market, you can find the professional account manager of the opening brokerage to list them one by one, and choose the market that investors like, are good at, and can bear the degree of risk.

Summary

Compared with the over-the-counter market, there are still many advantages in the trading market, which are mainly reflected in the following aspects:

1. Real-time transaction, accurate transaction。During the trading hours (9:30-11:30, 13:00-15:00 on the trading day), the implementation of real-time bidding between buyers and sellers, the transaction is the market.

Second, the rate is lower。Compared with the over-the-counter**, the operating rate of the on-market** is generally only 06%, which is significantly lower than the 15% and 0 of the index**8% and other rates.

And the cost of buying and selling in the market is almost only a commission, and the commission charged by the company is very low, generally 10,000$5.

Third, the liquidity is good。Since the trading method of the exchange is similar to that of the exchange, it has good liquidity and investors can buy and sell at any time.

Fourth, high transparency。Transactions on the floor are conducted on the exchange, and all transaction information is open and transparent.

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