Buying and selling ETPs requires a clear understanding of the various order types. And financial professionals can help their clients to achieve optimal trade execution by simply choosing the right type of order placement.

The ETF Book (Wiley 2009) by Richard Ferri, CFA recommends a couple of methods for effectively trading ETFs: (1) to trade ETFs within a window of 30 minutes after the opening bell and 30 minutes before the closing bell to avoid trading when ETF spreads are the highest; and (2) to trade on non-volatile days when the intraday values are stable.