If things go south you could well be forced to liquidate at a substantial loss. Indeed this dynamic of forced selling is what drives a lot of financial panics. The more you lever up to hedge out various risks the more you'll magnify anything you don't see coming, and there's always something you don't see coming.
Also levered ETFs have oddball mechanics between one day and the next, so you don't get 2x the index return if you hold overnight.
I would say if you do this do it with at most 10% of your portfolio, and don't dump in extra money to support it.
Also levered ETFs have oddball mechanics between one day and the next, so you don't get 2x the index return if you hold overnight.
I would say if you do this do it with at most 10% of your portfolio, and don't dump in extra money to support it.
Statistics: Posted by barcharcraz — Wed Dec 20, 2023 12:14 am — Replies 39 — Views 3604