Hi Guys, I am facing a problem here. I actually would like to trade indexes but I want to hold for the long term. I know I can use ETFs as an option but they do not provide me with much leverage. I am currently purchasing Call options as they give me leverage but their expiry date is always 3 months to 6 months and the time decay is very high. Considering Futures but wonder what happens after the futures expires? Does it roll over to a new future contract? Is there time decay in futures? Are there any other instruments I can consider using too? Thank you
Most obvious choice would be the two-times ETFs, like Pro funds QLD or SSO. I think you can buy them on margin, so you could get four times leverage, although I would not advise that.
You can use leveraged (2X) ETFs. Futures often (but not always) have a slight "time decay" about 5% per year, search Contango and Backwardation. When futures expire, they are settled into cash. You have to roll them manually, is isn't a big deal. You may consider selling ETF LEAP put options.
Hi guys, as I am from Singapore. Where can I get most of the instruments mentioned? Interactive brokers? Possible? Futures, if the time decay cost of 5% pa thhat may be equal to my cost of margin interest too