I have a lot of questions about this ETF and I don't truly understand it, so if anyone could help out here, that would be great.
How exactly does this ETF work? I understand that it represents the inverse of the general Dow trend, but that this is not an ETF that one would buy and hold and it seems that the strategy is "buy at a price you believe to be cheap, set a limit order for a potentially large payout in a market panic."
As the Dow continues to rise and $DXD continues to become cheaper and cheaper, is it worth throwing in some, with the idea that history always repeats itself and there will be a market panic at some point or another?
One last question; it seems this is a "leveraged ETF." I understand that "leveraged" means to invest on borrowed money, however does this affect the people investing in it? In other words, is someone who is purchasing this ETF, like any other ETF exposed to the leveraged risk? Or, if I were to invest $2000 and the ETF peters out before a panic, I'm only liable for that $2000 and nothing more?
Thanks in advance for any help! Looking forward to discussion.
Submitted October 27, 2017 at 06:46AM by renaissance_boy_ http://ift.tt/2iH0OwY
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