BNP Paribas introduces 10x ETF:s in Sweden

Discussion in 'ETFs' started by bln, Dec 5, 2012.

  1. bln

    bln

  2. this is amazing , when are these coming to AMERICA
     
  3. Never.
     
  4. meh. Just trade OTM FOPs.

    (if you're into that kind of thing)
     
  5. zdreg

    zdreg

    what is fop?
     
  6. FUtures Option.

    Edit: Futures OPtion.

    (there, I fixed it).
     
  7. Pippi436

    Pippi436

    Why is it that insane? DAX futures are 25x..
     
  8. bln

    bln

    Futures are targeted towards professional traders that are expected to have deep knowledge and know what they are doing. ETFs on the other side are targeted to the retail crowd which generally do not know how to handle leverage. Lot of people may hurt themselves on these instruments. The ETFs in question may drop 50% in one day and half your capital is gone. Then on top of that you got the deprecation effects.
     
  9. etfs are amazing because of the limited downside

    so $1000 = $10,000 in leverage and u can only lose $1000 that's better than any options contract i know of



    if you got a $3k account that $30k buying power interest free doesnt get better than that
     
  10. I don't see how that is a defensible statement given the number of professional traders, funds, and entire houses who have blown up due to leverage issues.
     
    #10     Dec 7, 2012