Funds are divided into on-exchange and off-exchange. On-exchange and off-exchange refer to the difference between trading venues. On-exchange is the stock trading market, which is what everyone calls the secondary market. OTC refers to the market in addition to stock trading. Elsewhere outside the market. Compared with over-the-counter funds, on-exchange funds are more complex because transaction prices change in real time.

How is the transaction price of the on-site fund determined?

After the investor entrusts the transaction, the market will match the transaction and finally determine the transaction price. When investors buy on-site funds, they need to fill in the entrusted price themselves, but the transaction price is not necessarily the entrusted price. The final price depends on the market matching results. Generally, the buying transaction price is lower than or equal to the buy order price, and the selling transaction price is higher than or equal to the sell order price.

Common on-exchange fund types include ETFs, LOFs, etc. Compared with OTC fund transactions, their main advantages are: the trading rules are similar to stock trading, the overall transaction is convenient, the handling fee is low (usually a minimum of 5 yuan per transaction), and the capital utilization rate is high.

Investors suitable for on-site funds:

Since the trading rules are similar to stock trading, on-site fund transactions require constant monitoring of the market, which requires higher investor ability and is more suitable for institutions. or experienced investors. For novice investors, it may be a better choice to understand the difference between on- and off-market funds and choose a variety that suits them.

On-exchange funds are riskier than OTC funds, but they are suitable for investors who like short-term operations. After all, the handling fees of on-exchange funds are much lower than those of on-exchange funds. On-exchange funds It is very similar to stocks.