Best trading execution during volatile times
The tradeability and liquidity of an Exchange Traded Product (ETP) is dependent on the underlying exposure. During periods of extreme volatility or market disruption, investors can expect that market makers will quote ETPs tracking the underlying investment with wider spreads, and uncertainties around the underlying market could cause potential trading disruptions.
It is typically better practice to use marketable limit orders with the aim of placing an order with a higher probability of execution whilst providing protection against sweeping through the order book. For example, if an investor places a simple market order with a broker, this would risk wider pricing ranges, which are not necessarily beneficial, that an investor may not typically expect. It could be the reason you have seen inconsistencies in pricing and orders with your broker.
For further information and order type definitions can be found here in Six Trading Best Practices to Improve ETF Execution.
Short & Leveraged Exchange-Traded Products are only intended for investors who understand the risks involved in investing in a product with short and/or leveraged exposure and who intend to invest on a short-term basis. Any investment in short and/or leveraged products should be monitored on a regular basis (as frequently as daily) to ensure consistency with your investment strategy. You should understand that investments in short and/or leveraged exchange-traded products held for a period of longer than one day may not provide returns equivalent to the return from the relevant unleveraged investment multiplied by the relevant leverage factor. Potential losses in short and/or leveraged exchange-traded products may be magnified in comparison to investments that do not incorporate these strategies. Please refer to the section entitled “Risk Factors” in the relevant prospectus for further details of these and other risks associated with an investment in short and/or leveraged exchange-traded products. You should consult an independent investment adviser prior to making an investment in short and/or leveraged exchange-traded products in order to determine suitability to your circumstances.