– Glossary
Exchange Traded Funds (ETFs)
ETFs are investments that contain a pool of securities representing a specific index such as the Dow Jones Industrial Average or the S&P 500. Essentially, ETFs are built like mutual funds but trade like stocks. They are priced continually and can be bought or sold throughout the trading day. ETFs are attractive to individual and institutional investors alike because they provide liquid, cost-efficient exposure to a broad range of asset classes. They can be shorted or purchased on margin and many of them are even optionable, such as the Nasdaq-100 Trust (QQQ).
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CFD's are leveraged products. Trading in CFD's related to foreign exchange, commodities, financial indices and other underlying variables carry a high level of risk and can result in the loss of all of your investment. As such, CFD's may not be suitable for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with CFD trading and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall Mega Trader FX Ltd have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to any transactions related to CFD's or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Past performance pertaining to trading in CFD's related to foreign exchange, commodities, financial indices and other underlying variables is not a reliable indicator of future performance. Content on any websites operated by Mega Trader FX Ltd does not contain advice or recommendations by or on behalf of Mega Trader FX Ltd. The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.
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