The leverage tag has no wiki summary.
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Calculating the profit earned from a leveraged futures contract
How do we calculate the profit/loss of Futures contract? For example, If I had a Futures contract that had $10 000 as the underlying, it had $1000 margin and the Futures contract itself was worth $3. ...
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Can you beat the market by investing in double long ETFs?
Certain ETFs double the daily rate of return of certain indices.
Can you use such ETFs to beat the market (not on a risk-adjusted basis, just in terms of pure returns)?
I have read that
When ...
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4answers
325 views
Are Forex traders forced to use leverage?
I heard today that all Forex traders are forced by the Forex companies to use large leverages.
Is this true? I understand this might be good for some companies, but possibly bad for the traders. How ...
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2answers
152 views
How does leverage work?
Can someone give (or point me to) a concrete example of how leverage trading works?
Let's say in Forex. I have $1000, and I want to short/long the Euro at a 1:100 leverage. How much do I stand to ...
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3answers
960 views
Definitions of leverage and of leverage factor
From investopedia
Here's an example of a "yen carry trade": a trader borrows 1,000
Japanese yen from a Japanese bank, converts the funds into U.S.
dollars and buys a bond for the equivalent ...
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2answers
184 views
What is volatility drag?
Given a leverage portfolio, what does the term volatility drag mean? And how does it affect the value of the portfolio?
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3answers
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Investing in a leveraged index ETF for retirement. Risky?
I'm 23, and in addition to my 401k at work, I have a few thousand saved in an IRA. Right now I have it sitting in Treasurys earning around 3%.
Over the past 50 years the S&P has averaged around ...
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4answers
370 views
Is the gold and silver in the GLD and SLV ETFs leveraged?
There are various blogs and videos that indicate that the gold that GLD holds (via HSBC) and the silver that SLV holds (via JP Morgan) is leveraged 50 to 1 or 100 to 1. For me there are some ...
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1answer
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Protecting Gains: Buying a Put vs. Leveraged Bear Market vs. Liquidating Long Positions?
I am a long investor looking to protect some of my gains in the recent market rally.
What are my options? I know of 3 possibilities:
Buying a Put (in say SPY)
Leveraged Bear Market (say QID)
...
4
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3answers
365 views
High Leverage Inflation Hedges for Personal Investors
I'm looking for an investment that will appreciate against inflation in the US Dollar. I want to be leveraged 10:1 or more. For the sake of argument, let's say I have only $10,000 to invest, which ...
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1answer
243 views
What are the risks associated with leveraged trading accounts?
What is a leveraged account and why is it mandatory on some trading platforms to operate through leverage?
Also, what are the associated risks? Could I end up losing more money than I invested?
