Take a look at these two NatGas instruments. I would have expected a similar move, but they are totally contrary to each other. How is that possible? 1) ProShares UltraShort Bloomberg Natural Gas (KOLD) NYSEArca - Nasdaq Real Time Price. Currency in USD 7.35-0.56 (-7.08%) As of 9:54AM EDT. Market open. 2) ProShares Ultra Bloomberg Natural Gas (BOIL) NYSEArca - Nasdaq Real Time Price. Currency in USD 63.55+3.96 (+6.65%) As of 9:54AM EDT. Market open. Source: https://finance.yahoo.com/KOLD https://finance.yahoo.com/BOIL
Go read the Fund Summary under Profile for each of these on Yahoo Finance. https://finance.yahoo.com/quote/KOLD/profile?p=KOLD https://finance.yahoo.com/quote/BOIL/profile?p=BOIL They did not pick the best name for KOLD, but it says ultra short in the description. If you don't understand how it works, then don't trade it.
KOLD: The investment seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-2x) of the performance of the Bloomberg Natural Gas SubindexSM for a single day. BOIL: The investment seeks daily investment results, before fees and expenses, that correspond to two times (2x) the performance of the Bloomberg Natural Gas SubindexSM for a single day. Ok, now it makes sense: KOLD is 2x inverse (ie. -2x), and BOIL +2x, of something else (an index or so) as the basis. Btw, these 2 then are perfect instruments for "contrarians" & for such strategies... Ie. the rise of one means (always) the fall of the other, and vice-versa...