Leveraged ETF

A leveraged ETF aims for two or three times an index's daily move and resets every day. Up 10% then down 10% leaves the index at 99 and a 2x fund at 96, the same volatility drag that punishes over-sizing. It is leverage you cannot size per position, unlike margin you choose trade by trade.

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  • Inverse ETFAn inverse ETF aims for the opposite of an index's daily move, so it rises when the index falls, and it resets daily…
  • Index rebalancingIndex rebalancing is when an index changes members or weights and every fund tracking it must trade the difference…
  • US ETFA US ETF is an exchange-traded fund on a US exchange that holds a basket, usually an index, and trades all day like…
  • Market capitalizationMarket capitalization is share price times shares outstanding, the market's price for the whole company. Index weights…
  • Position sizingPosition sizing is deciding how much to trade: the rupees you are willing to lose divided by the distance from entry…
  • Buying powerBuying power is the position value your free margin can open at the allowed leverage: ₹20,000 at 10x is ₹2,00,000. It…

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