Exchange traded funds, or ETFs for short, is a relatively new innovation in the stock market that traders buy and sell funds in exactly the same way as they do with individual stocks. This is a big step forward from traditional mutual funds, where the investor usually doesn’t know the exact price he will get to buy and sell on, and orders can take up to several days to go through. With ETFs, everything happens instantly in real-time.
As more and more forex brokers started offering CFDs based on well-known ETFs, some social trading forex brokers also jumped on the trend. The fact that these ETFs are offered as CFDs also make it easier than ever to short them for traders who believe an ETF will go down in price.