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GraniteShares

Education

Value vs Price

Posted:

Value per ETP and price per ETP are two different notions. Value per ETP is a value used to create and redeem securities. Price per ETP is the level at which market participants trade ETP Securities during market hours.

Value per ETP

The Value per ETP is calculated only once a day against the official index level (Closing Index Level). It is used as a reference to settle creation and redemption orders between GraniteShares and institutions that have entered signed a specific agreement (an Authorised Participant Agreement).

Note that:

  • the publication of the Value per ETP is entirely rules based as described in the Terms and Conditions of the Base Prospectus. There can be no discretionary decisions regarding the inputs and calculation of the Value per ETP.
  • the Closing Index Level is calculated and published by the index sponsor. GraniteShares has no involvement in the way the index is calculated or published.

Price per ETP

The Price per ETP is the level at which each market participant agrees to buy and sell the ETP. Market participants include market makers, institutional investors, wealth managers and sophisticated investors. The level is freely and independently determined by the buyer and the seller.

Such trades can happen on a regulated exchange or over the counter (OTC) and as long as the trade’s conditions do not breach any rules (for instance the stock exchange listing rules), the trade will go ahead.

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