Lessons
- Reading the trading card: spread, premium and capacity Lesson 1, 7 minutes
- Capacity: how much can trade before the price moves Lesson 2, 7 minutes
- Who keeps ETF prices tight: APs and market makers Lesson 3, 7 minutes
- Leveraged and inverse ETFs: what the daily promise means Lesson 4, 7 minutes
- Leveraged decay in numbers: 3 months of 3x funds Lesson 5, 7 minutes
- Covered call ETFs: income now, a cap on the upside Lesson 6, 7 minutes
Your progress
Finish all 6 lessons and get 2 of 3 right on each quiz to earn the course certificate.0 of 6 lessons passed on this device.
What you learn
- How to read a fund trading card: cost to trade, price against NAV, capacity, dealers and bad days, and how the six parts add up to the IQ Liquidity Score
- Capacity: how many dollars of a fund's holdings can be bought in a day without moving their prices, and how that changes the cost of a large order
- Who keeps ETF prices tight: authorized participants, lead market makers and wholesalers, and what each does
- What a leveraged or inverse ETF promises (a multiple of the index each day) and why a longer period gives a different result
- Why a 3x fund can lose far more than 3 times an index over three months: the path effect, the fund's own gap and the score that ranks it
- How a covered call ETF turns upside into cash: what it writes, what it paid and gave up in a falling and a rising stretch, and its capture ratios