Market Design

How the market is designed


First a little glossary; ETP stands for Exchange Traded Product which usually refers to anything that can be traded, typically instruments managed by issuers but could technically include equities and commodities. ETF stands for Exchange Traded Fund. These are regulated instruments that must be backed with the underlyings, or something equating them, that they track.

ETPs – ETF vs ETN Read More »

Correlation to SPX

VIX and therefore UVXY are inversely correlated to SPX movements, but correlation is rarely perfect. The historical average is a correlation of -.80, or 80% of the time they move in opposite directions. This leaves 20% of trading sessions where they move the same direction, moving up or down together. For traders expecting perfect correlation

Correlation to SPX Read More »

Share Splits

Most ETPs along with many equities will perform splits to keep the trading price in a range that’s comfortable for traders, few are looking to stick with the no split policy used by BRK.AFor an ever declining underlying like UVXY, this means a reverse split to raise the price back up. UVXY has undergone 10

Share Splits Read More »