http://www.direxionshares.com/pdfs/Direxion_Funds_at_a_Glance.pdf Its a real response. I initially said that i've seen hedge funds use this tactic - I have no idea what your personal margin rates are on various platforms, etc. Example - a few weeks ago there were rumors that Goldman might go private, this might have spawned a "crash up" in the financial sector - you could have gone all in and used this tactic to make a buck. I know of two hedge funds who did this with the S&P and made 40% in a few weeks.
Yes, your explanations of the inner workings of how these funds achieve what we want them to do is very informative. Thank you.