Does anyone here trade the NIFTYBEES?

#1
Does anyone trade the NIFTYBEES - the nifty exchange traded fund? Is it liquid enough to trade (not for daytrading but to trade intermediate to long term moves)? I was wondering if it is liquid enough to trade. The volumes seem to be low but I am intrigued by the following statements about the NIFTYBEES (found these on Benchmark Funds website):

ETFs derive their liquidity first from trading the shares in the secondary market and second through the in-kind creation / redemption process with the fund in creation unit size. Due to the unique in-kind creation / redemption process of ETFs, the liquidity of an ETF is actually the liquidity in the underlying shares.


Does this mean the NIFTYBEES are liquid enough to trade? I sorely miss trading the QQQQs (Nasdaq 100 Index ETF) that I use to trade in the US.

--SwingTrader
 
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#2
Hi Swing Trader

me too would love to work on the etf, you could direct your question to Ivan Boesky on this forum he is an expert on this subject on the nse.

I work on the spy options.

b rgds
gopii
 

alokdaga

Active Member
#3
gopii said:
Hi Swing Trader

me too would love to work on the etf, you could direct your question to Ivan Boesky on this forum he is an expert on this subject on the nse.

I work on the spy options.

b rgds
gopii
What are spy options?

Can you please explain??

Alok
 
#4
Liquidity, as defined by traded value, is not very high for the NiftyBeES. Around 9 lakh rupees of traded value per day (Jan 05 to date). But then on some days the volume is much higher.... And if you dont intend doing too much volume, then even the current traded volume is good enough.
 
#5
One BIG disadvantage of trading ETF's here is one can only trade on the long side. If one wants to go short then Nifty Futures is the way to go.

As far as liquidity is concerned the sponsors of the ETF has to provide a continuous BUY/SELL quote and provide liquidity to the counter. SO I personally do not think that liquidity should be a problem.
 
#7
:D:Dyeah its good to trade with niftybees rather than trading in nifty futures

reasons

1. you can hold it even if your ideas go wrong on a particular day even if you trade intraday

but i never heard that buy and sell quotes and trading is supported by the mutual fund its left to the market:)
 

vasa1

Active Member
#8
As far as liquidity is concerned the sponsors of the ETF has to provide a continuous BUY/SELL quote and provide liquidity to the counter. SO I personally do not think that liquidity should be a problem.
Sorry to question you, but are you sure about this? I had a bad experience with BANKBEES and I do buy the odd GOLDBEES once in a while.

How can one know if BENCHMARK (the BEES sponsors) is actually providing two-way quotes?
 

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