Price limits for NextShares limit orders are expressed relative to NAV, rather than as
an absolute dollar price.
Limits on limit orders are expressed relative to NAV, rather than as
an absolute dollar price.
The first model attempts to minimize
absolute dollar price differences between actual and model.
Not exact matches
The
absolute dollar amounts to a lot given the high median home
prices in SF.
This is lower volatility than many other stocks in percentage terms, but because of the high stock
price (
absolute, not a reflection of value) the moves are large in
absolute dollar terms.
Which is to say, $ 10 - $ 20 is the bad spot of the
price curve, and above that you'd be making more
absolute dollars per sale, except for the fact that nobody's going to pay that much.
Even if you were to spend hours shopping for the
absolute best
price in order to save two
dollars a year (the economics of which are debatable), you'd still come out significantly ahead in the event of a loss.
An alternative to
dollar cost averaging would be trying to «time the market,» in an effort to predict how the
price of the shares will fluctuate in the months ahead so you can make your full investment at the
absolute lowest point.
Even if you were to spend hours shopping for the
absolute best
price in order to save two
dollars a year (the economics of which are debatable), you'd still come out significantly ahead in the event of a loss.