Quote:
Originally Posted by Geodyssey
You do not know what you are talking about.
The "F" in "ETF" stands for FUND. It's not "ETS".
Yes you can set a stop loss order on an ETF.
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Actually, I do know what I am talking about. Let me see if i can break this down and explain it in bite size chunks much like I explain things to my 5 yo grandson.
The E in ETF mean EXCHANGE. The T in ETF means TRADED. Still with me? Ok, now you are correct the F in ETF means FUND. Score one for you - happy day! Ok, now, assuming you have got all that straight in your head, it’s called an EXCHANGE-TRADED FUND because .. wait did you see how I got those words in that order? Ok, it called that because because it is traded on an exchange just like a? I’ll wait .. A STOCK .. you got it, bingo! An ETF will trade on the exchange just like a STOCK even though it may have underlying equites (big word there, google is your friend on that) that make up it’s value.
So, there, you see, an ETF (refer to above if you have forgotten what that stands for) is just like a stock and trades like a stock.
Broken down for a five year old .. you still with me?