I am new to trading. I am planning to invest in etfs. I read somewhere that it’s important to consider etf volume before investing in etf. if the volume is less it might be difficult to sell the etf. Is it true? I am planning to in vest in icicib22 etf which has a volume of around 3laks is it a good volume?
Yes. If you try to sell something and nobody is buying U cannot sell it.
That depends on how much you plan to invest/sell.
For example for someone lookign to invest 1Cr now
a 3Lac daily-volume means having to wait more than a month to buy/sell 1Cr.
(…or alternately lose a few % by offering to buy at a premium and sell at a discount to attract someone to transact)
If you haven’t already please consider reading Varsity to understand the various basics and nuances.
Specifically, this chapter on ETFs.
Do read this from Varsity - It is quite comprehensive.
thanks man for taking time to answer my question. I have already invest in it bees and icicib22 bees. I have invest only 60000 in each. My buy order was executed immediately.does that mean i will be able to sell immediately.
Thanks for the post you shared. I will go through it.
I have one question have you personally traded etfs yourself. If so can you share your experience
BEES are specific to nippon etf, icici will not have bees. Always place a limit order if the bid/ask spread is very wide.
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You can determine this yourself by looking at the volumes in asks and bids In the market-depth.