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10 Reasons to Use ETFs When Trading Options

Michael Shulman, February 7, 2009 Free Trading Guides

Learn how to DOUBLE your money from stocks that go DOWN!

How do investors and traders cope with a market that has fallen more than 40% in just one year and survive until greener pastures return?

Many traders have lived to tell the tale by trading both the long and short sides, or by taking a longer-term inverse (contra) Exchange-Traded Funds (ETFs) as a portfolio hedge. And it's the contras that have insulated them against the big slides.

These are funds that benefit from market declines and advances in price -- some approximately point-for-point and others by a factor of two. And they enable you to have all the benefits of shorting the market without the hassles of borrowing stock and incurring margin debt.

Here are 10 reasons why you should consider using ETFs when trading options.

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