Source: ‘Shadow trading’ ETFs - https://on.ft.com/3In3xFa
Can any professional or experienced individual shine some light on what "robust derivatives market" means here? And what would be an example of the opposite even?
Thanks all in advance
Robust derivatives markets
- Thread starter JonLivingston
- Start date
Source: ‘Shadow trading’ ETFs - https://on.ft.com/3In3xFa
Can any professional or experienced individual shine some light on what "robust derivatives market" means here? And what would be an example of the opposite even?
Thanks all in advance
An example for you from commodities world. Look at the options chains for the silver ETF, SLV. Numerous options available, fantastic liquidity and very tight spreads, with some options a tick or two wide with no slippage most of the time. It is very popular with options traders for good reasons!
Contrast this with the leveraged long natural gas ETF, BOIL. It is a very useful ETF, I use it occasionally. But the options have a much wider spread and are much lower volume, so lots of slippage/gapping is possible. I so far have not used those options for those reasons.
Contrast this with the leveraged long natural gas ETF, BOIL. It is a very useful ETF, I use it occasionally. But the options have a much wider spread and are much lower volume, so lots of slippage/gapping is possible. I so far have not used those options for those reasons.