What is an ETF Trading?

ETF trading or exchange traded fund can be best defined as an investment portfolio that includes number of investments which are designed to be traded in the same manner as stocks. Others may mistaken trading an ETF as similar to mutual funds trading. Although at some point, they may have some similarity, but in general, ETF and mutual funds are different. Exchange traded funds have the potential to be bought and sold through out the same day. On the other hand, mutual funds have restrictions and limits associated with the closing sale fund. The process of trading an ETF is not as limiting as in the process of day trading and the concept of minimum investment are not applied in ETF. Lastly, in ETF, it is possible for an investor to buy or sell as much as they wish to.