U.S. Stock Options Strategy nine: Covered Call Strategy

The Covered Call Strategy is an options trading strategy that combines holding stocks with selling call options. It is suitable for investors expecting the stock price of the held stocks to remain stable or slightly increase. This article will introduce the basic concepts and operation of the Covered Call Strategy, demonstrate its application through a practical case, and finally provide a corresponding profit and loss graph analysis. Overview of the Covered Call Strategy The Covered Call Strategy involves holding a certain quantity of stocks and selling an equal quantity of call options. The purpose of this strategy is to collect additional premiums by selling call options while maintaining a stock position. Principle of the Strategy Hold Stocks:Investors own shares of a particular stock. Sell Call Options:Investors sell an equal number of call options to the number of stocks held, collecting premium. Profit and Loss Characteristics Maximum Profit:Limited to the appreciation of the stock price to the execution price plus the premium collected from selling the call options. Maximum Loss:Theoretical maximum is if the stock price drops to zero, but can be reduced by the premium collected. Breakeven Point:Stock purchase price minus the premium collected. Practical Case Assuming an investor holds stock G with a price of $100 per share and expects the price to remain stable or slightly increase: Investor holds 100 shares of stock G. Sells 100 call options with a strike price of $105, collecting a premium of $2 per share. If stock G rises to $110at the expiration date, the options will be exercised, and the investor sells the stock at $105, retaining the premium. Total profit is $7 per share ($5 appreciation + $2 premium). If stock G falls to $90at the expiration date, the options expire worthless, and the investor retains the premium. However, the value of the stock decreases, resulting in a net loss of $8 per share ($10 decline - $2 premium). Drawing the Profit and Loss Graph To visually represent the profit and loss situation of the Covered Call Strategy, we will create a profit and loss graph. The chart will illustrate the changes in profit and loss at different stock price levels. Next, I will draw this profit and loss graph. [image]
2024-01-10 16:28uSMART

U.S. Stock Options Strategy ten: Collar Strategy

The Collar Strategy is a risk management strategy used to protect investors from the impact of a significant downturn in the stock market. This strategy involves simultaneously holding stocks, buying protective put options, and selling call options. This article will introduce the basic concepts and operation of the Collar Strategy, demonstrate its application through a practical case, and finally provide a corresponding profit and loss graph analysis. Overview of the Collar Strategy The Collar Strategy consists of two parts: buying protective put options to safeguard against the risk of a stock price decline and selling call options to generate premiums while limiting the potential gains when the stock rises. This strategy is suitable for investors who wish to provide a certain degree of protection for their held stocks. Principle of the Strategy Hold Stocks:Investors hold a certain stock. Buy Protective Put Options:Investors purchase put options to protect against the risk of a decline in the stock price. Sell Call Options:Simultaneously, to offset the cost of the put options, investors sell call options. Profit and Loss Characteristics Maximum Profit:The profit occurs when the stock price rises to the execution price of the call option. This profit is the sum of the premium received from selling the call option and subtracting the premium paid for the put option. Maximum Loss:The loss occurs when the stock price drops to the execution price of the put option. This loss is the sum of the premium paid for the put option minus the premium received from selling the call option. Breakeven Point:The current stock price plus the premium paid for the put option, minus the premium received from selling the call option. Practical Case Assuming an investor holds stock H with a price of $100 per share and adopts the Collar Strategy by: Buying a put optionwith an execution price of $95, paying a premium of $3. Selling a call optionwith an execution price of $105, receiving a premium of $2. Then: Maximum Profit:Occurs when the stock price is equal to or exceeds $105, resulting in $105 - $100 + $2 - $3 = $4. Maximum Loss:Occurs when the stock price is equal to or falls below $95, resulting in $100 - $95 + $3 - $2 = $6. Breakeven Point:Approximately $100 + $3 - $2 = $101. Next, I will draw the profit and loss graph based on these parameters. [image]
2024-01-10 16:21uSMART

U.S. Stock Options Strategy eleven: Buying a House: Long Straddle Strategy (Comparison with the Seller's Straddle Strategy)

The Long Straddle strategy for buyers is an options trading strategy where investors simultaneously buy call options and put options with the same expiration date and strike price. This strategy is suitable when investors anticipate significant price volatility in an asset but are uncertain about the direction. This article will provide a detailed introduction to the basic principles and operation of the Long Straddle strategy, demonstrate its application through a practical case, and finally offer corresponding profit and loss graph analysis. Additionally, it briefly mentions the profit and risk situations of the Seller's Straddle strategy. Overview of the Long Straddle Strategy for Buyers The Long Straddle strategy involves simultaneously buying the same quantity of call options and put options with the same strike price and expiration date. The core of this strategy lies in utilizing market volatility. Principle of the Strategy 1.Buy call options: Anticipate a price increase. 2.Buy put options: Anticipate a price decrease. 3.Market volatility: As long as the market experiences significant volatility, profits will be generated on at least one side of the options, regardless of the direction. Profit and Loss Characteristics Maximum profit: Theoretically unlimited, depending on the magnitude of stock price volatility. Maximum loss: Limited to the total premium of the two options. Breakeven points: The strike price plus or minus the total premium of the two options. Practical Case Assuming the current market price of Stock I is $100: 1.The investor buys call options with a strike price of $100, paying a premium of $5. 2.The investor simultaneously buys put options with a strike price of $100, paying a premium of $5. 3.Therefore, the investor's total investment is the sum of the premiums for the call and put options, i.e., $10. To profit from this strategy, Stock I's price needs to experience significant volatility by the expiration date. Calculation of Breakeven Points Upper breakeven point: Strike price + total premium of the two options. In this case, it is $100 + $10 = $110. Lower breakeven point: Strike price - total premium of the two options. In this case, it is $100 - $10 = $90. Decision Basis Before adopting the Long Straddle strategy, investors need to assess whether Stock I is likely to reach or exceed either of these breakeven points before the expiration date. In other words, Stock I needs to rise above $110 or fall below $90 before the expiration date for investors to profit. This strategy is suitable for anticipating major news announcements, financial report releases, or other events that may cause significant price fluctuations. If investors believe that Stock I is unlikely to experience such substantial volatility, adopting this strategy might not be the best choice, as limited price fluctuations could result in the maximum loss, i.e., the total premium invested. Next, I will draw a profit and loss graph to accurately reflect these considerations. [image]
2024-01-10 16:15uSMART

Buying Bitcoin ETF on uSMART

What is a Bitcoin ETF? How to Purchase Bitcoin ETFs on uSMART? In recent years, cryptocurrencies have emerged as a novel investment class, with Bitcoin being the most recognized among them. Having once surpassed the $60,000 mark, achieving historic highs, the market has witnessed the introduction of Bitcoin Exchange-Traded Funds (ETFs). So, what exactly is a Bitcoin ETF, and how can one purchase it on the uSMART platform? This article will provide a detailed overview, including information on the types of Bitcoin ETFs, how to choose them, and the associated investment risks. What is Bitcoin? Bitcoin (BTC) is the earliest form of virtual currency, also known as a cryptocurrency. Introduced in 2009 by an individual or group using the pseudonym Satoshi Nakamoto, Bitcoin operates on a decentralized system, not issued by central banks or government institutions. Existing solely in electronic form, transactions, transfers, and storage occur electronically. Bitcoin is essentially a string of code without a physical presence. Blockchain technology underpins Bitcoin, ensuring secure, anonymous, and tamper-resistant recording of transactions. What is a Bitcoin ETF? A Bitcoin ETF is specifically designed to track the price of Bitcoin. Its price and volatility closely correlate with the market price and volatility of Bitcoin. Bitcoin ETFs enable investors to participate in Bitcoin investments through their brokerage accounts without directly purchasing and storing Bitcoin. This significantly lowers the barriers to Bitcoin investment for both traditional institutions and individual investors. Additionally, Bitcoin ETFs provide increased liquidity, transparency, and convenient trading methods. Types of Bitcoin ETFs: Bitcoin ETFs can be categorized into physically-backed ETFs (spot Bitcoin ETFs), synthetically-backed ETFs (futures Bitcoin ETFs), and other types. Physically-Backed Bitcoin ETFs: 1.These ETFs track the price of actual Bitcoin in the spot market. 2.Asset management companies purchase and hold physical Bitcoin, representing ownership through ETF shares. 3.Individuals indirectly own Bitcoin by purchasing ETF shares. 4.As of now, the U.S. Securities and Exchange Commission (SEC) has not approved the launch of physically-backed Bitcoin ETFs. Synthetically-Backed Bitcoin ETFs: 1.These ETFs track the prices of Bitcoin derivatives, such as Bitcoin futures or other cryptocurrency trading derivatives. 2.Some Bitcoin futures ETFs have been approved by the SEC. 3.For example, the ProShares Bitcoin Strategy ETF (BITO) tracks the prices of BTC futures contracts traded on the Chicago Mercantile Exchange (CME). Notable Bitcoin Futures ETFs: 1.BITO (ProShares Bitcoin Strategy ETF): Ticker: BITO The first Bitcoin ETF, listed on the New York Stock Exchange on October 19, 2021. Managed by ProShares with a management fee of 0.96%. As of April 21, 2023, BITO's assets under management are approximately $953 million. 2.BTF (Valkyrie Bitcoin Strategy ETF): Ticker: BTF The second Bitcoin futures ETF, listed on Nasdaq in October 2021. Management fee is 0.95%. As of April 21, 2023, BTF's assets under management are around $29.6 million. 3.XBTF (VanEck Bitcoin Strategy ETF): Ticker: XBTF Listed on the Chicago Board Options Exchange in November 2021. Management fee is 0.66%. As of April 21, 2023, XBTF's assets under management are approximately $42 million. All three options mentioned above can be purchased through the uSMART APP. Detailed steps are illustrated in the diagram below. Additionally, there are other listed Bitcoin futures ETFs, such as BITS and DEFI. If you are interested, please feel free to leave a message! Purchasing Bitcoin ETFs on uSMART: uSMART offers a convenient platform for purchasing Bitcoin ETFs. Follow the steps below: Open the uSMART app and use the search bar to enter the keyword "Bito." Click on "Trading" to access the relevant section. Follow the illustrated steps to complete the purchase. [image]
2024-01-09 12:00uSMART

Buying SHV on uSMART

What is SHV? How to Buy SHV on uSMART? This article introduces the iShares Short-Term U.S. Treasury Bond ETF (code: SHV). What is Treasury Bond ETF? A Treasury Bond ETF refers to an exchange-traded fund with treasury bonds as underlying assets. Similar to traditional stock ETFs, it allows investors to indirectly participate in the bond market. Treasury Bond ETFs typically represent a portfolio of sovereign and municipal bonds, enabling risk diversification and stable returns. Differences Between Treasury Bonds and Government Bonds: Issuer:Treasury bonds are issued by entities other than the government, while government bonds are issued by the government. Purpose:Treasury bonds are usually used for corporate financing or institutional funding, while government bonds are used for government funding. Repayment Method:Treasury bonds typically repay interest at agreed-upon times and rates, with principal repaid at maturity. Government bonds may have various repayment structures. Risk and Returns:Differences in issuer and purpose contribute to variations in risk and returns between treasury bonds and government bonds. Both types are bond instruments, and investors should choose based on their investment goals and risk tolerance. What is SHV? The iShares Short Treasury Bond ETF (SHV) is issued by iShares, aiming to track the performance of the Barclays U.S. Short Treasury Bond Index. Established in 2007, SHV invests in U.S. Treasury bonds with remaining maturities between one month and one year. Over half of SHV's portfolio consists of U.S. Treasury bonds, with the remainder in cash and derivatives. It provides a convenient way for investors to indirectly invest in the short-term U.S. Treasury bond market, offering lower risk and relatively stable returns. Advantages of SHV: Low Risk:SHV primarily invests in short-term U.S. Treasury bonds, featuring a lower risk profile. High Liquidity:As an ETF, SHV can be traded on the exchange with high liquidity, allowing investors to buy and sell at any time. Stable Income:Due to its investment in short-term government bonds, SHV offers relatively stable returns, suitable for income-focused investors. Preservation Characteristics:SHV's portfolio is mainly composed of government bonds, providing preservation characteristics to resist market fluctuations and risks. Simple and Convenient:Investors can invest in short-term government bonds through SHV ETF without individually purchasing various bonds, simplifying the investment process. Disadvantages of SHV: Currency Risk:SHV invests in U.S. Treasury bonds, exposing investors to foreign exchange fluctuations, especially for non-U.S. dollar investors. Inflation Risk:Investing in fixed-income products like SHV may lead to reduced real returns if inflation rates rise. Low Yield Potential:SHV's main investments are in short-term U.S. Treasury bonds, offering relatively lower yield potential, especially in a low-interest-rate environment. Market Impact:While SHV invests in low-risk assets, extreme market conditions could still impact its value. Recommended List of U.S. Treasury ETFs: Code ETF Full Name Size (Billion USD) Expense Ratio Duration (Years) Tenure SHV iShares Short Treasury Bond ETF 220 0.15% 0.32 Short-term GOVT iShares U.S. Treasury Bond ETF 212 0.05% 5.96 Medium-term VGLT Vanguard Long-Term Treasury ETF 33.9 0.04% 16.3 Long-term VGSH Vanguard Short-Term Treasury ETF 168.4 0.04% 1.90 Short-term SCHO Schwab Short-Term U.S. Treasury ETF 99 0.06% 1.90 Short-term Why Choose iShares Short Treasury Bond ETF (SHV)? SHV's performance is akin to a short-term cash substitute, with a low-risk, low-return portfolio of U.S. Treasury bonds. The fund tracks the ICE U.S. Treasury Short Bond Index, a collection of U.S. Treasury bonds with a remaining maturity of less than a year. The fund maintains an AAA credit rating for all held securities, ensuring minimal credit risk. SHV's low-risk profile makes it challenging to achieve significant returns, but its potential for capital appreciation is limited. How to Buy SHV on uSMART? Search for the keyword "SHV.US." Select "Trade." Choose "Buy/Sell." Unlock the transaction. Refer to Figure 5 for real-time quotes. [image]
2024-01-09 11:49uSMART

Smartly Dollar-Cost Averaging into US Stock ETFs on uSMART SG

What is stock deposit? Why invest in Singapore stock through SMART Savings Plan on uSMART SG? The Definition and Advantages of Stock Deposits Definition of Stock Deposits Stock saving is a long-term investment method that involves continuously buying stocks, accumulating the number of shares, and holding them for a long time, by receiving annual stock dividends and cash dividends issued by the company. To save stocks, the first step is to choose a good company and continue to buy the company's stocks. When the company makes a profit, it will distribute the surplus to shareholders. Therefore, investors can reduce the cost of holding through the stock dividends issued by the company. If the company distributes cash dividends, investors can invest more funds to buy stocks and enjoy the compound interest benefits of saving stocks. The purpose is to accumulate the number of stocks to earn annual dividend income and also earn the price difference of stock fluctuations. For investors who are not very familiar with investing in stocks, or those who do not have time to study stocks, they can participate in corporate profits and earn higher interest rates than bank fixed deposits through stock deposits. Advantages of Stock Deposition Simple investment: Depositing stocks is a relatively simple investment method. Investors can focus on researching and understanding the fundamental development of a company, such as its profitability, competitive advantage, management team, etc. This allows investors to avoid paying too much attention to short-term market fluctuations and technical indicators, and instead focus on the long-term development potential of the enterprise. Dividend income: Holding stocks and receiving dividends is an important advantage of stock preservation. By investing in stocks of companies with stable dividend payment records, investors can create passive cash inflows. Dividends, as a part of corporate profits, provide investors with a stable source of income, which is very attractive for investors seeking cash flow. Time saving: Compared to frequent trading or actively managing investment portfolios, storing stocks can save the time required to mark stocks. Investors do not need to pay frequent attention to market fluctuations and short-term trends, but can allocate more time to other affairs. This is particularly attractive for those who hope to use investment as a part-time or passive source of income. Reduce psychological pressure: Storing stocks is a way of long-term investment, where investors focus more on the long-term value of a company rather than short-term market fluctuations. Compared to frequent trading and chasing short-term gains and losses, investing in stocks can alleviate the psychological pressure caused by market fluctuations. The long-term investment strategy enables investors to better face market fluctuations and be more patient in waiting for long-term growth in their investments. How to select the stock deposit target? Select high-quality industry leading companies: Look for companies that are in a leading position in their respective industries. These enterprises typically have stable profitability, strong brand influence, and sustained innovation capabilities. By selecting these high-quality industry leaders, investors can share their long-term growth and stable cash. Select companies with good industrial prospects: In addition to earning dividends from the company's rights issue, the company also hopes to earn the price difference of the stocks. Therefore, the industrial prospects of the company in which the stocks are stored are very important. It is not advisable to invest rashly based solely on the high dividends issued by the company in the past. It is necessary to regularly review the company's industrial prospects, revenue information, major news releases, and whether the management level frequently changes, etc., and observe the above information, Regularly review the investment portfolio of existing stocks. Selecting stock targets based on dividend yield: Dividend yield refers to the ratio of dividend payments to stock prices. Choosing stocks with relatively high dividend yields can result in higher dividend income relative to investment returns. However, investors should pay attention to ensuring that the chosen company has sustainable dividend payout capabilities and consider other factors comprehensively. Selecting stock deposit targets based on cash dividend distribution: Focus on the company's cash dividend distribution records. Look for companies with a stable dividend payment history and the ability to continuously increase dividends. This indicates that the enterprise has good cash flow and sustainable profitability, providing stable cash inflows for investors. For investors who pursue stable cash flow and relatively low risk, a high dividend ETF in the US stock market may be a worthwhile option to consider as a stock option. The following section will introduce US stock ETFs, the advantages of investing in US stock ETFs, the comparison of 10 high dividend US stock ETFs in 2023, Singapore's best deposit rate, and US stock ETF high deposit rate. Comparison between Singapore's Best Fixed Deposit Rate and US ETF's High Deposit Rate Singapore's Best Fixed Deposit Rate As of December 2023, HSBC, SBI, and HLB offer the best fixed deposit rates for various maturities in Singapore. (Note: The rate may vary and may vary depending on the deposit amount and other factors) Tenure Banks Interest Rate Min. Amount 3-month HSBC 3.60% p.a. S$200,000 6-month SBI 3.65% p.a. S$50,000 12-month HLB 3.65% p.a. S$500,000 However, the interest rate for investing in high dividend stocks in Singapore is higher than the best fixed deposit rate in Singapore. The detailed data is shown in the table below. Singapore's high dividend deposit rate stocks (>5%) Counters Name & Stock code Dividend yield DBS (D05) 5.66 % OCBC (O39) 6.31 % UOB (U11) 5.86 % Mapletree PanAsia Com Tr (N2IU) 5.85 % CapLand Ascott T (HMN) 5.94 % Kappel Reit (K71U) 5.34 % Why use SMART Savings Plan function to invest in high-dividend products? Using SMART Savings Plan tools to invest in high dividend products is a convenient and efficient method. Among them, the SMART Savings Plan function is an automated investment strategy that can help investors regularly purchase specific dividend products or fund shares within set time intervals. Investors can set a SMART Savings Plan and specify the investment amount and purchase frequency through intelligent tools or online investment platforms. The benefits of SMART Savings Plan function include: Diversifying market risk: Regular purchase of dividend products can help investors diversify market risk. Due to regular purchases, investors can purchase dividend products at different market price levels, resulting in an average purchase cost. Long term investment returns: Through fixed investment, investors can adopt a long-term investment strategy and continuously accumulate dividend products. Long term investment helps to cope with market fluctuations and provides investors with better opportunities to participate in the long-term growth of the market. Automation and time-saving: The fixed investment function can automatically execute investment plans, reducing investor operations and management work. Investors only need to set a SMART Savings Plan, and the intelligent tool will automatically purchase dividend products, saving time and energy. Balancing emotions and avoiding emotion driven decisions: The fixed investment function helps investors avoid emotion driven investment decisions. Due to regular purchases, investors do not need to worry too much about market fluctuations and short-term price changes, thus avoiding emotional impulse buying and selling. Flexibility and adjustability: The regular investment function usually has flexible setting options, such as the ability to change the investment amount, purchase frequency, or terminate the regular investment plan at any time. In this way, investors can adjust according to their own needs and market conditions. What are the advantages of using SMART Savings Plan function on uSMART SG? Support daily, weekly, monthly, specific time, regular buying Support free to set the amount of SMART Savings Plan, starting from 100USD Support free selection of deduction accounts - either from uSMART SG account or eGIRO bank account. extremely low transaction commissions Free real-time quotes Steps for depositing Singapore stocks using uSMART SG SMART Savings Plan function After logging into the uSMART SG APP, click on [ Quotes ] from the bottom of the page, then click on [ SG ] at the top of the page and click on the search symbol to search for the high dividend stock codes mentioned earlier in this article. Then click on [ Trade ] in the bottom right corner and select the [ SMART Savings Plan ] function. The image operation instructions are as follows: [image]
2024-01-09 11:35uSMART

How to trade U.S. stock ETFs on the uSMART SG App?

What are U.S. ETFs? An ETF (Exchange-Traded Fund) is an open-ended fund that is listed and traded on an exchange, buying an ETF is equivalent to buying all the constituent stocks of the index. Similar to a regular/unlisted fund, an ETF invests in a basket of stocks, bonds, and/or other assets, when buying the underlying ETF, the investor also takes on the underlying asset exposure. When you invest in an ETF, you get a bundle of assets you can buy and sell during market hours—potentially lowering your risk and exposure, while helping to diversify your portfolio. ETFs can be categorized into "passive" and "active" types. In brief, passive ETFs aim to track the movement of an underlying index/benchmark which is also known as an index-tracking ETF, such as an index ETF which tracks the movement of an index and moves up or down in tandem with the index which it tracks. An active ETF is a financial product in which the fund manager decides to invest and actively manages the underlying portfolio to achieve its investment objective. In addition, there are also inverse ETFs and leveraged ETFs, which are mainly used for hedging purposes. The return of an inverse ETF will be opposite to the performance of the tracked asset. When the price of the relevant underlying financial product or index tracked goes up, the price of the inverse ETF will go down and the opposite is also true. Inverse ETFs are similar to call or put options. Leveraged ETFs, in contrast to traditional ETFs, are designed to provide profits or losses equal to a specific multiple of the related index and are also subject to daily rebalancing. Leveraged and inverse products involve the use of leverage and rebalancing activities and as a result their prices may be more volatile. What are the advantages of investing in U.S. ETFs? Diversity: ETFs typically track a specific index or portfolio of assets. The U.S. stock market is one of the largest and most active stock markets in the world, encompassing a wide range of companies from various industries and sectors. Through investing in U.S. ETFs, you can easily gain access to a basket of U.S. stocks, avoiding the impact of a single stock's performance on your return, spreading your risk, and gaining access to a broader investment portfolio at a lower entry fee than regular stocks. Stability: ETFs are more suitable for medium or long-term investors who emphasize on the "general trend" rather than individual stock research. Normally, investors can choose a few ETFs with good liquidity, buy them after the stock market bottoms out, and sell them after the general trend reverses. The number of transactions per year is not high, and the risk is relatively low. Trading flexibility: U.S. ETFs have high liquidity and trading volume. U.S. ETFs are listed and traded on U.S. stock exchanges and can be bought and sold during the trading day. This means you can buy or sell U.S. ETF shares anytime at the market price, enjoying trading flexibility and liquidity. Lower cost: Compared with some actively managed U.S. stock investment funds, U.S. ETFs usually have lower management fees and transaction costs. This is because U.S. ETFs usually adopt a passive management strategy that tracks a specific index and does not require frequent trading or active research for stock selection. Transparency: U.S. ETFs usually disclose their positions and net asset value (NAV) publicly and transparently, enabling investors to clearly understand the fund's composition and and company information, so that investors can better evaluate and understand their investments. Tax Benefits: The trading structure and redemption mechanism of U.S. ETFs allow investors to manage capital gains tax more effectively. When selling U.S. ETFs, you can choose to sell specific shares, thereby controlling your capital gains tax liability. Comparison of U.S. ETFs of Different Sizes U.S. ETFs can be broadly categorized into large-cap ETFs, small- cap & mid-cap ETFs and full-market ETFs. The following is a comparison of U.S. ETFs with different sizes in terms of investment targets and volatility. What are the three major U.S. stock indexes? At present, the three major indexes of the U.S. stock market are the Dow Jones Industrial Average index (Dow), the NASDAQ Composite Index (Nasdaq) and the Standard & Poor's 500 Index (S&P 500), which are important indicators of the overall performance of the U.S. stock market. Categories of ETFs Introduction Examples of Constituent Stocks NASDAQ Composite Index Includes all shares listed on the Nasdaq Stock Exchange (currently over 3,600) and is an important indicator of technology stocks, which also include new and emerging sectors. Constituents stocks mainly include technology stocks, but also include emerging sectors such as telecommunication stocks, biotechnology stocks and semiconductor stocks. Standard & Poor's 500 Index Containing 500 U.S. companies, the index is composed of 500 companies selected by the rating agency Standard & Poor's based on market capitalization and liquidity value. The S&P 500 has a more diversified industry coverage and better reflects the performance of the U.S. economy in general. Constituents stocks include Twitter, Starbucks, Netflix and FedEx and so on. Dow Jones Industrial Average index Established more than 100 years ago, it is the oldest stock index, in which 30 constituent stocks are large U.S. companies, however, its industry coverage is relatively small. The constituent stocks are large U.S. corporations, such as McDonald's, Microsoft and so on. How to buy and sell U.S. ETFs? U.S. ETFs are traded in the secondary market in the same way as U.S. stocks and can be traded at any time during market trading hours. The smallest trading unit of U.S. stocks is one share, and the fees associated with investing in U.S. ETFs are basically the same as those for U.S. stocks in general. However, investors should note that ETFs will incur some fees and expenses, such as management fees and other administrative fees charged by the fund manager, which will be deducted from the ETF's assets, thus lowering its net asset value. What are the benefits of buying U.S. ETFs with uSMART SG? (Simple, easy, and smart order placement) Comprehensive range of tradable types: almost all U.S. ETFs can be traded. Low trading commissions: long-term will save a lot of costs and increase earnings in the stock market. 0.003 USD per share, minimum 0.50 USD per order, maximum 0.50% * transaction amount. Full-time trading hours: support for U.S. stocks before and after trading, night trading to achieve U.S. stocks 24 hours trading, providing more trading opportunities. Intelligent order function: there are 9 types of intelligent orders, such as sell high, buy low, grid orders, etc., to realize the automatic monitoring of the market, at any time to place an order, do not have to worry about missing the preferred price, fast pending transactions, easy to save energy. Professional and high-quality customer service: Provide 24 hours a day service, and at any time through the official website and uSMART SG App to contact our customer service, while customers can also through WhatsApp or Telegram (+65 89124669), quickly communicate with professional customer service manager, get timely assistance. In addition, uSMART SG provides multi-language services in Chinese, English, Cantonese and Malay and so on. Considerations for Investing in ETFs In order to select a quality ETF product and diversify risk, it is best to have a broad tracking universe, liquidity, ability to hold for a long period of time, and no reliance on unrepeatable assets, etc. ETFs offer a wide range of products to choose from, such as stock ETFs, bond/fixed-income ETFs, commodity ETFs, currency ETFs, inverse ETFs, leveraged ETFs, and ETFs on sustainable investment concepts, etc. However, there are some points to note when buying ETFs, for example, investors should consider the track record of the fund mana. Steps to buy U.S. ETFs with uSMART SG: After logging in to uSMART SG APP, click on [ Quotes ] at the bottom of the page, then click on [ US ] at the top of the page and pull down slightly, find the Quick Access column and select [ Hot ETF ], select the ETF category and specific ETF index you want to invest in, then click on [Trade ] at the bottom right corner and select [ Buy/Sell ] function, and then select the stock price, number of shares, and trading conditions and then send out the order; if you select the [SMART Order ] function, select the type of smart order and then send it out. Picture operation guideline is as follows: [image]
2024-01-08 18:58uSMART

Introduction to US Stock Level Quotes

US Stock Level 1 (NASDAQ Basic) Concept: Level 1 refers to the most basic real-time stock market quotes, providing the best bid and ask prices available in the market. It offers a snapshot of market dynamics, including the highest buying price, lowest selling price, and various essential stock information. Components of US Stock Level 1 Quotes: Best Bid and Ask Prices (Bid and Ask):The highest buying price and lowest selling price in the current market. Best Bid and Ask Quantities:The quantity of stocks corresponding to the best buying and selling prices. Last Price:The most recent transaction price. Change:The percentage change in the current stock price compared to the closing price of the previous trading day. Volume:The total number of traded stocks. Open:The opening price for the day. High:The highest trading price of the day. Low:The lowest trading price of the day. Purpose of US Stock Level 1: Real-Time Quotes:Provides the current best bid and ask prices, including the highest buying price and lowest selling price. Trading Dynamics:Displays the latest transaction price, trade volume, and stock price change, helping investors track real-time trading conditions. Basic Price Information:Offers fundamental price data such as the opening price, highest price, and lowest price, aiding investors in understanding price trends over a period. Market Reference:Serves as a foundation for investment decisions, allowing investors to understand the current market price level for formulating trading strategies. Volume Information:Provides the number of stocks traded, assisting investors in assessing market activity and trading pressure. In summary, Level 1 quotes provide investors with a fundamental framework for quickly understanding market conditions, serving as a crucial reference for investment decisions. US Stock Level 2 (Arcabook) Concept: Level 2 refers to real-time order book data from exchanges, offering up to 40 levels of buying and selling quotes. It allows users to view the best bid and ask prices for 10, 20, or 40 levels. Level 2 provides more detailed information, making it more valuable for investors. Components of US Stock Level 2 Quotes: Level 2 quotes typically include more in-depth market information, covering: Multiple Bid and Ask Prices (Bid and Ask):Provides prices and corresponding quantities for multiple levels of buying and selling orders. Market Depth:Shows additional buying and selling order levels beyond the best bid and ask, usually up to 40 levels. Electronic Communication Network (ECN) Information:Displays data from electronic communication networks, offering more details about order flow. Order Book:Contains investors' outstanding orders, allowing a view of impending market orders. Time & Sales:Shows recent stock transaction details, including price, quantity, and time. Advantages of US Stock Level 2: Deeper Market Insight:Compared to Level 1 quotes, more in-depth market order book data helps investors better gauge market sentiment. Comprehensive Market Understanding:By using Level 2 quotes, investors can gain a more thorough understanding of market depth and liquidity, observing more buy and sell orders to analyze market activity and price changes, leading to more accurate trading decisions. Differences Between US Stock LV0, LV1, and LV2: Quote Feature LV0 Basic Quotes LV1 Standard Quotes LV2 Advanced Quotes Bid/Ask Order Book No Yes Yes Time & Sales No Yes Yes Quote Data Partial Yes Yes Depth of Data Levels No Best Bid/Sell (1) Best Bid/Sell (40) Price/Volume Chart No No Yes Large Order Alerts No No Yes Follow us Find us on Twitter, Instagram, YouTube, and TikTok for frequent updates on all things investing. Have a financial topic you would like to discuss? Head over to the uSMART Community to share your thoughts and insights about the market! Click the picture below to download and explore uSMART app! [image]
2024-01-08 18:15uSMART

Introduction to Hong Kong Stock Level Quotes

Level 1 (LV1) Quotes Concept: In stock market quotes, there are three levels: basic quotes (LV0), standard quotes (LV1), and advanced quotes (LV2). LV1, also known as standard quotes, is the market data provided by brokers when downloading stock trading software. This basic service is generally free. LV1 quotes provide a snapshot of market information every approximately 6 seconds, including the top 5 bids and asks at the moment of the snapshot, intraday trades (last traded price and total volume within the last 6 seconds), composed of dozens of real trades. Advantages: 1.Real-time and free Hong Kong LV1 quotes with millisecond-level streaming updates. 2.Automatic streaming quote updates. 3.Immediate best bid, ask prices, and market depth. 4.Real-time transaction records and statistics. 5.Real-time charts and rankings. 6.Instant understanding of fund flows and transaction distribution. 7.Real-time index changes. 8.Display of the top five bids. Purpose: LV1 quotes primarily provide market information for stocks, bonds, funds, and indices. During the auction period, they offer security codes, security names, previous closing prices, virtual opening prices, virtual matching volume, virtual unmatched volume, and the remaining direction of unmatched volume. During continuous trading, LV1 quotes include security codes, security names, previous closing prices, latest traded prices, highest and lowest prices of the day, cumulative traded volume and value for the day, real-time highest five bid prices and quantities, and real-time lowest five ask prices and quantities. It provides the best bid and ask prices. Level 2 (LV2) Quotes: Concept: LV2 quotes, also known as advanced quotes, are real-time market information services for Hong Kong stocks introduced by the Hong Kong Stock Exchange (HKEX). This service covers all stocks listed on the HKEX. LV2 quotes are typically fee-based and require the purchase of a quotation card for access. LV2 quotes offer real-time streaming prices with no need for manual refresh. Generally, they provide ten levels of buy and sell market data, as well as detailed information on individual trades. Advantages: 1.Display of ten levels of buy and sell market data (buy order number, buy order price, order quantity, and broker quantity). 2.Real-time quotes with automatic refreshing. 3.Detailed trade records (traded price, trade time, trade volume). 4.Display of buying and selling brokers, showing bohh broker codes and broker names. 5.Total buy and sell quantities for all thousand levels. 6.Lower latency. Purpose: 1.LV2 quotes offer a more transparent view of buy and sell queues. Traditional quote software only shows the order quantity on the top bid and ask, without revealing how these orders are formed. LV2 software provides detailed information on the first 50 order details for the top bid and ask, helping to distinguish between institutional and retail orders. 2.Enhanced precision in viewing trade details. LV2's detailed trade data includes real details of each trade's price and volume, significantly improving market transparency. References: 港股交易系统搭建介绍 — 港股LV2行情 - 知乎 港股即時報價系統比較 冷知識/學懂Level 1及Level 2報價差別 VBKR - Level 1 Quotes for US Stocks 知乎 - Difference between Level 1 and Level 2 Quotes Follow us Find us on Twitter, Instagram, YouTube, and TikTok for frequent updates on all things investing. Have a financial topic you would like to discuss? Head over to the uSMART Community to share your thoughts and insights about the market! Click the picture below to download and explore uSMART app! [image]
2024-01-08 18:05uSMART