Jump to content

Spread Trading

Chrisjan Botha

By Chrisjan Botha
in Investments

 Share

Recommended Posts

jman Newbie

jman

Posted
Posted

Quoting from: http://www.stealthywealth.co.za/2017/09/why-ter-trumps-brokerage.html#more

 

"In addition, because an ETF trades on the exchange, there are buyers and sellers, which means there is a spread. At a basic level, the spread is the difference between what the buyers are willing to buy at and what the sellers are willing to sell at. For example, an ETF that has a value of R100 may see buyers willing to pay R99.50 for ETF units and sellers wanting to get R100.50 for their units. This means if you went in and bought, you would have to meet the sellers asking price of R100.50 (for something that is worth R100 - i.e. you are already 50c per unit down on your investment just due to the spread. And technically you would be R1 per unit down if you wanted to exit again immediately)."

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
 Share
Go to topic listing

  • The JSE Investment and Finance Forum

    Platinum Wealth is a leading financial forum with an eye on the future of our country and the citizens of South Africa.  Even though the era of trading exclusively with physical goods is in the distant past, we as a civilization have always looked for new ways to prosper. Simply put, ways to get a better deal.  To have more, for less.  At Platinum Wealth we have created a bigger platform for you to do exactly that - a connected network of your peers giving the tips and tricks that have helped them reach their financial and investment goals.

    From personal finance and creating wealth, to financial news and small business, we cover it all at Platinum Wealth.  Pose your money and investment questions in our money and investment forums, we'll make sure they get answered.  We want to guide a new generation of money conscious readers.  We are here to share tips and practical knowledge that will help you live large without sacrificing your financial independence.

  • Tell a friend

    Love Platinum Wealth: The JSE and ZAR X Financial and Investment Forum? Tell a friend!

  • Topics

×
×
  • Create New...