Do ETFs trade like stocks? Let's take the Proshares TQQQ triple leveraged NASDAQ index for example. So say, I buy 10 shares at $100.
In one day, the index goes down 3.333% this means my ETF is down 10%. Say the index goes back up 3.33% Does this mean I gain my 10% loss back, or does it mean that it's 10% of $90, making it less than $100, therefore I have less money than I started even if the index fully recovered? In a common stock, if I own 10 shares and it goes down 10% and back up 10%, I'm back at $1000 with no profit/loss. Is that the Case for ETFs?
Suppose I'm using a 10x leveraged ETF (I know it doesn't exist but still) and the index is down 10%, does this mean I lose all of my money, or do I still hold 10 shares? What if it dropped 20%? How can I have a 200% loss?
Submitted May 30, 2017 at 06:04AM by LAN_of_the_free http://ift.tt/2quOvqF
