Source: https://mochatrade.com/learn/glossary/leveraged-etf

# Leveraged ETF
URL: https://mochatrade.com/learn/glossary/leveraged-etf
Last modified: 2026-10-17

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](https://mochatrade.com/learn). It is leverage you cannot size per position, unlike [margin you choose trade by trade](https://mochatrade.com/support/how-leverage-and-margin-work-on-mochatrade).

## Related terms

- Inverse ETF: https://mochatrade.com/learn/glossary/inverse-etf
- Index rebalancing: https://mochatrade.com/learn/glossary/index-rebalancing
- US ETF: https://mochatrade.com/learn/glossary/us-etf
- Market capitalization: https://mochatrade.com/learn/glossary/market-capitalization
- Position sizing: https://mochatrade.com/learn/glossary/position-sizing
- Buying power: https://mochatrade.com/learn/glossary/buying-power