For a long term (3-5 years) trade . Knowing that nothing is for free, how do I go about getting 2x leverage on the Nasdaq 100 index. I could buy QQQQ on margin (and pay margin loan fee) at the broker, or I could buy the mutual fund UOPIX (which has a 1.7 % expense ratio) Which one of the two options is better ? Are there any other options ?
Your biggest bang for the buck is trading Nasdaq 100 Index e-mini futures. NQU05, You need an overnight performance Bond of $3,750 to control $31,250 based on last sale. You will of course have to roll over your position every 3 months. http://www.cme.com/edu/emini/
Thanks for the suggestions. I see leaps only going out to Dec 2007. Are there any going further out ? vhehn, can you give me a few pointers on what strike price you would choose ? One of my objectives with this particular trade (I am already holding emini futures in another account) is to resist the temptation at short term timing. I want to basically buy and hold (for upto 5 years) I was reading an article by Mark Hulburt that the average holding time for a stock is now 11 months. I feel that I will have a chance at beating the crowd by holding longer. I would also like to mention that long term gains in the stock market are tax free in New Zealand.