Simple Tips to Trading ETFs | Page 2 of 2 | ETF Trends

Investors should also refrain from market orders and use limit orders to better control their trades.

“Limit orders place price as a priority, so you are signalling to the marketplace that that’s the highest price you want to pay for the ETF’s share, but something to remember is that as price is a priority, quantity is not. So make sure you maintain and look at that order to make sure it’s executed properly,” Martin added.

Additionally, Martin explained that large investors may also work with a capital markets team or a brokerage firm’s trading desk to execute large orders in ETFs with low trading volumes in an efficient manner that does not affect the market price.

For more ETF-related commentary from Tom Lydon and other industry experts, visit our video category.