How deep do financial instruments go?

Name
Email
Subject
Comment *
File	Select/drop/paste files here
* = required field	[▶ Show post options & limits] Confused? See the FAQ.

Embed	(replaces files and can be used instead)
Oekaki	Show oekaki applet (replaces files and can be used instead)
Options	Do not bump (you can also write sage in the email field) Spoiler images (this replaces the thumbnails of your images with question marks)
Password	(For file and post deletion.)
Allowed file types:jpg, jpeg, gif, png, webm, mp4, pdf, pdf Max filesize is 16 MB. Max image dimensions are 15000 x 15000. You may upload 5 per post.

File: 12ff16435e1cde1⋯.jpg (83.39 KB, 500x375, 4:3, fat ball cat.jpg)

How deep do financial instruments go? Anonymous 08/19/17 (Sat) 20:26:37 No.7646

I'm a noob. Can I buy shares in shares?

Anonymous 08/19/17 (Sat) 20:26:52 No.7648

Isn't buying shares in shares just "buying shares"?

Or, if you mean, investing in shares generally as opposed to buying shares in some particular company or industry, what you want is called an "index fund".

Anonymous 08/19/17 (Sat) 20:27:06 No.7649

>>7646

You can, sort of.

http://www.investopedia.com/terms/e/etf.asp

Anonymous 08/19/17 (Sat) 20:27:25 No.7650

Even relatively simple instruments available to retail traders go ridiculously deep. A good example are the VIX ETFs like VXX.

Level 1: Stocks

Level 2: Stocks are aggregated into the S&P500 index

Level 3: There are options on the index

Level 4: From volatility implied by the options, the VIX index is calculated

Level 5: Futures on the VIX

Level 6: The ETF holds futures on the VIX

And arguably level 7 is that the ETF uses a predetermined strategy to trade the VIX contracts, which is what ultimately determines the returns.