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  • Leveraged ETFs Might Be the Cause of Late Day Trading Moves [View article]
    correct. they buy (AKAIK) warrants and then ... some other firms have to go and execute the actual trades. I don't understand when or if stocks get transferred to ownership by the ETF. so its like a time-blur effect : we can say that the ETFs don't buy/sell the market, but they do so indirectly. heavy buying forces heavy buying thru the executing parties.

    and that is part of the confusion of modern day casinos ... erm...sorry...finance.

    I'm trying to figure out in greater depth how these ETFs actually execute and nobody ever answers me. because they don't know.

    this is really important and we need to get to the bottom of it.





    On Dec 16 02:29 PM Hodarius wrote:

    > Leveraged ETFs don't buy or sell any actual stocks, and therefore
    > don't affect stock prices. Leveraged ETFs buy and sell derivatives
    > (options, swaps) that are *tied* to stock prices, and therefore will
    > affect prices of options - but not the stocks that the options are
    > tied to.
    Dec 16 19:12 pm |Rating: 0 0 |Link to Comment
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