trader if you understood how these things work you would understand why there will most likely never ever be any ETF launched with more than 3x leverage.
The SEC had a hard time introducing 2x and even 3x, 4x has a 0.00001% chance of making it to the market place. Those rumors are false.
there are only 3 leverage ETF companies that I know of and I can say with absolute certanty that one of them will not consider 4x trad3r did you start this rumor or did you hear it from somewhere more credible?
let's hope not or the margin regulation will change on these instruments. i am sure there are ongoing discussions.
hi, Apologies if this question has been asked before and I missed it.... What happens if Russell 2000 index goes up 40% in 1 day and I'm holding TZA (3x Inverse ETF). Does that mean TZA goes to zero or -20%? What price does TZA open the next day? Thnx.
Thats why every investor or potential investor should read the prospectus. The 3x ETFs will not go to $0. There are stop losses in place to prevent this. I have no idea about the 2x ETFs but I still suggest you read that prospectus as well.