XIV termination event?

Discussion in 'ETFs' started by beefcaketrade, Feb 6, 2018.

  1. I'm not in this but there's lot of talk about the XIV hitting the -80% mark which is a termination event according to the prospectus of the ECN?

    So what's going to happen now? Is it really then end or not?

    Also, what will happen to related products like SVXY or UVXY?

  2. cole_


    I think that only applies to intraday losses. So an AH loss plus an intraday loss would not result in termination. We are really close though. XIV looks like it's going to get terminated
  3. Chubbly


  4. cole_


    I wonder how many noobs put their life savings into this?
    it's hard not to laugh, it is such a retarded r:r bet.
  5. trader99


    I shorted it back when it was high 90s and covered at 75. Glad I got out there alive because it went to $146. Aww... Had I got the balls to re-short at $146... shoulda coulda woulda..

  6. Now we need VIX futures to drop 50% and wipe out UVXY too. Clean slate!
  7. Gueco


    do leveraged etfs like TQQQ carry the same type of risk ?
  8. T1 (material news) trading halt issued for 3 inverse VIX ETNs this morning: SVXY, XIV, and ZIV.
  9. Seriously, could happen.

    What a way to clean house though. Maybe someone hated the retail VIX traders and decided to clean them out. Engineer massive drop. Then engineer massive rally. Short VIX ETN goes first. Then long VIX ETN goes after. All gone like you say.

    Why the retarded rule about terminating at -80% anyway, especially for a short VIX product? I mean, by the very nature of the VIX, which has a tendency to spike, and then drop rapidly, a short VIX ETN is bound to get hosed the moment any volatility comes in. It's a matter of time. Which goes back to the point, why write in a rule of terminating at -80%? Obviously it can happen. It just did. wtf.
  10. jys78


    Presumably the issuer trying to protect themselves and limit their own exposure in the event of a big move like this.
    Last edited: Feb 6, 2018
    #10     Feb 6, 2018
    MoreLeverage likes this.