195: Ilan Israelstam – The Inner Workings of an ETF Manager
Chat With Traders
00:00
How to Control Your Leverage
The ASX 200 ETF, that doesn't use futures at all. That just is actually buying the shares. So there's no futures there. The price is ultimately governed by traders who are in the market right at that point in time. Like if someone is buying it up or selling it, that's moving the price. How do you make sure that price is in line with the underlying asset? Well, simply because we are also owning that underlying asset. We're just shorting it. And essentially the whole point of these funds is to allow investors to invest knowing they can't lose more than their initial capital.
Transcript
Play full episode
