ETF

DSLV ETF

What is the DSLV ETF?

The DSLV investment seeks to replicate, net of expenses, three times the opposite (inverse) of the S&P GSCI Silver index. The index comprises futures contracts on a single commodity. The fluctuations in the values of DSLV are intended generally to correlate with changes in the price of silver in global markets.

So what is DSLV in English? DSLV is a three times short of silver futures. DSLV is a good way to get exposure to the short silver market without shorting actual futures contracts. We have found that DSLV tracks closely with the inverse of SLV on the daily price chart.

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ETF

GLD ETF

What is the GLD ETF?

The SPDR Gold Shares ETF (GLD) is an Exchange-traded fund. The GLD ETF seeks mirror the performance of the gold market. The GLD ETF offers investors a way of participating in the gold bullion market without taking physical delivery of gold. The Gold ETF makes it easier of the small trader or investor to buy gold.

Can a trader trade GLD Options?

When trading options some things are just not worth it. Options have high volatility. A trader might be up 20% one second and down 50% the next when trading options. This can be fool’s gold. The main problem with some options is the difference in the bid/ask spread. If a stock or ETF does not have much volume usually the options bid/ask is so wide that just a purchase of that option would put the trader at more that 10% loss. When the trader goes to sell they would lose another 10% on that trade. A trader would have to make 21% to just break even. The GLD ETF has enough volume that the difference in the bid/ask make it ok to use to trade options.

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ETF

SPY ETF

What is the Spy ETF?

The SPDR S&P 500 ETF (SPY) is an Exchange-traded fund. The SPY ETF seeks mirror the performance of the S & P 500 Index. The SPY ETF offers exposure to companies that are in the S & P 500 index. The Spy ETF does not seek to gain or lose money it seeks to perform just as the index that it tracks.

What is the S & P 500 Index?

The S&P 500 (Standard & Poor’s 500) Index is an index that is based on the market capitalization of 500 large companies having common stock listed on the NYSE or NASDAQ. Many people consider the S&P Index one of the best representations of the US stock market. Standard & Poor’s index began in 1957.

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