leveraged ETFs

Discussion in 'Trading' started by BRUCEPRICE, May 6, 2010.

  1. I trade QID and today it initially did what it was supposed to do- while the market was crashing- it rose from 16.59 all the way to 20.43. Then all hell broke loose and it momentarily traded as low as 2.50.
    Did the ETF get "broken" somehow by the volatile trading? It clearly decoupled from the market for an extended period this afternoon.

    Other leveraged ETFs performed as they were supposed to all day and a few decoupled even worse than QID.

    Does someone smarter than me know what happened? These have become such popular vehicles and they seemed very unsafe today. I have a feeling this is going to be a major story.
  2. jiminsd


    I got burned on this one too with a stop at 15.30 that closed at 14.15. Schwab say there is nothing that can be done. I usually throw those class action envelopes in the trash but this is one that I will be waiting for. I'd advise you to watch for it too.
  3. QID was on the list of NASDAQ broken trades yesterday.
    You might want to look into it.

    Really surprising to see that happen to a major index ETF. Even worse to see someone who made a successful bet under pressure, get his trade broken.
  4. jiminsd


    Thanks for the thought but the trade had to be down somewhere in the $7 range or lower to get busted. The rest of us are SOL.