Markets

ETFs: what it is, what moves it and how to study it

What it is, what moves it, when it moves and how to practice it on demo before thinking about a live account.

What it is

The market in a sentence

CFDs on exchange-traded funds that track whole indices or sectors.

Instruments HFM lists

  • SPDR S&P 500 ETF Trust
  • Invesco QQQ
  • iShares Russell 1000
  • SPDR sector ETFs

Examples taken from HFM's specification tables on October 26, 2026. The instruments available depend on the account type.

See the ETFs conditions on hfm.com →

What to study

To understand diversification: a single instrument with dozens or hundreds of companies behind it.

Be clear on this

Diversifying reduces the risk of one company, not market risk: in a general sell-off everything falls.

What moves it

Three forces worth watching

  • Their components

    An ETF moves with the companies it holds: an S&P 500 ETF reflects the index's 500 companies.

  • The sector or index it tracks

    A sector ETF depends on that sector's news.

  • Sentiment and flows

    When a lot of money enters or leaves a type of fund, the price reflects it.

Sessions

When it moves

They follow the hours of the exchange where the fund is listed (for example, the US one).

The exact hours of each instrument are published by HFM and can change.

Live chart

Watch it now

TradingView chart for educational purposes. Prices may differ from those on your HFM platform. Nothing on this page is a recommendation to buy or sell.

Practice

How to practice it on demo

Compare a broad ETF (like SPY) with a large stock on the same data day, and note which moved more and why.

  1. 01

    Open a demo account

    It is free and uses no real money. Request it with the button on this page.

  2. 02

    Mark levels on the daily chart

    Support and resistance from the last few weeks. That way you arrive at each session with a map.

  3. 03

    Calculate the size before trading

    Use Arco's calculators to set how much you risk per trade; on demo it counts too.

  4. 04

    Write everything down for a week

    What you saw, what you did and what happened. The journal is what gets studied, not the balance.

Frequently asked questions

Questions about ETFs

What is an ETF?

A fund that is listed on an exchange and tracks an index, a sector or a basket of assets. One instrument represents many companies.

Does diversifying remove risk?

It reduces the risk of one specific company, not of the whole market. In a general fall, almost everything falls.

Pick this market and watch it for a week on demo.

It is the first exercise of module 3: mark levels every day and write down what happened.