Registered: Mar 2010
03-07-12 09:13 PM
Quote from EliteTraderNYC:
Hey guys just wondering if any of you trade leveraged ETFs? like 2, 3X Bulls/Bears. Do the leveraged ETFs behave as if you would expect them to?
According to the written prospecuts of several 2x/3x ETFs, they are best suited for daytrading, however you can certainly swing trade them.
From what I've observed they do not "behave the way you would expect them to" given the time decay and swap strategies used within some of the ETFs.
Several of them have decent call premiums which can offset the downside if you are going to swing trade.
There are several threads that discuss such ETFs, check it out: