My brokerage has a warning about how leveraged etfs are not for all investors. Is the theoretical maximum risk for buying a leveraged etf losing all your principal, or could you actually lose more than your principal if the etf drops to a certain point?
For example, if I put $50.00 into spxl is that the same as putting $150.00 into spy? Spxl is 3x leveraged…
Is the max I could lose the $50.00 principal or is it further leveraged by the broker?
Thanks
Submitted December 29, 2022 at 12:20AM by Pfap12 https://ift.tt/BueUcCE
