You have to return the leverage at the end of the work day. Meaning the shares have to be sold at the end of the day and then brought again the following morning.
Meaning you are getting 3x the increase from the start of the work day until the end of the work day but also 3x the potential loss.
The problem is that you are exposed to volatility and cannot just ride out a storm. This is a day trading feature and not something for the long term investor.
If you have a crystal ball and know that you'll have more up days than down days, then you are good. Otherwise it is akin to speculating rather than investing.
They are probably good for a late stage boom cycle (if you could time the bust).
nextweek2|5 years ago
Meaning you are getting 3x the increase from the start of the work day until the end of the work day but also 3x the potential loss.
The problem is that you are exposed to volatility and cannot just ride out a storm. This is a day trading feature and not something for the long term investor.
If you have a crystal ball and know that you'll have more up days than down days, then you are good. Otherwise it is akin to speculating rather than investing.
They are probably good for a late stage boom cycle (if you could time the bust).
(Based on the Leveraged ETF's I have found)