Exchange-Traded Funds (ETFs) allow you to trade a diversified basket of assets through a single instrument. On Doto, you can trade ETFs through CFDs, enabling you to speculate on price movements without owning the underlying fund.
ETFs
ETFs involve trading funds that track the performance of a group of instruments, such as indices, sectors, themes, or commodities. Maximum leverage on ETFs is up to 20x.
📌 Trading hours:
ETFs are available Monday to Friday, from 14:35 to 20:55 (UTC).
⚙️ How ETFs work
ETFs have several characteristics that influence how they behave in the market:
1. Basket-based structure
Each ETF represents a group of underlying assets rather than a single instrument. As a result, price movements reflect the combined performance of all components within the fund.
2. Two layers of liquidity
ETF liquidity comes from:
The ETF’s own trading volume shown in the terminal
The liquidity of the underlying assets inside the ETF
Because of this, spreads and execution quality may vary depending on how liquid the underlying market is.
3. Tracking error
ETFs aim to follow a benchmark (such as the S&P 500). However, small differences between the ETF price and the benchmark may occur due to fees, rebalancing, or imperfect replication. This difference is known as tracking error.
4. Time-of-day effects
Spreads and price stability can vary depending on market hours. For example, an ETF linked to U.S. equities may show wider spreads when the U.S. market is closed.
5. Rebalancing events
ETFs that track indices are periodically rebalanced. On rebalancing days, trading volume and volatility may increase.
▶️ How to trade ETFs?
Doto offers a variety of ETFs, allowing you to choose instruments that align with your trading plan, timeframe, and market outlook.
ETF prices reflect the movement of their underlying assets. You can use technical analysis and market trends to support your trading decisions.
📊 ETF trading strategies
ETF trading can be approached in different ways depending on your timeframe, risk level, and market expectations:
📈 Intraday trading – Trading short-term price movements during active market hours.
📉Swing trading – Holding positions for several days to capture medium-term trends.
Each approach can be adapted to different market conditions.
🌍 Factors affecting ETF prices
ETF prices are influenced by multiple factors, including:
🌍 Performance of underlying assets – Stocks, sectors, or commodities inside the ETF.
📈 Market liquidity – Both ETF and underlying market liquidity.
🏦 Economic data and interest rates – Especially for equity- and bond-based ETFs.
⚠️ Market hours and rebalancing events – Which may increase volatility.
🛑 Use risk-management tools
Trading ETFs with leverage allows you to open larger positions with a smaller deposit. To manage risk effectively, Doto provides:
Stop Loss – Set a maximum loss level to protect your capital.
Take Profit – Secure profits automatically at your chosen target.
These tools help you maintain control over your exposure, especially during volatile market periods.
Advantages of trading ETFs on Doto
✅ Diversified exposure – One instrument represents multiple assets.
✅ Lower concentration risk – Performance is not tied to a single company.
✅ Available during standard stock exchange hours – Trade ETFs from Monday to Friday during active sessions.
✅ Advanced tools – Real-time charts, analysis tools, and risk-management features.
ETF trading on Doto offers diversified market exposure through a single instrument. With Doto’s trading tools and market insights, you can react to price movements efficiently while managing your exposure responsibly.