2Settimana·

Total loss possible?

3 Series Leveraged ETF on NASDAQ 100

Is it actually possible to suffer a total loss because it is leveraged? So if the NASDAQ-100 falls by 34%, multiplied by 3 that is a price loss of over 100%.

7 Commenti

Chandra@Chandra

2Settimana

Then it would have to lose 34% in one day and it won't manage that. Google 'circuit breaker stock market' and you'll know why. In a nutshell, trading is stopped if the price falls too much in one day.

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Tim G.@equity_enthusiast_2103

2Settimana

Theoretically yes, but in my opinion relatively unlikely. I'm still in with 10 leverage, which makes it much more likely😣

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Sandy the Squirrel@Esperanza

2Settimana

@equity_enthusiast_2103 Eggs of steel. I'm keeping my fingers crossed for you!

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KleinAnleger1@KleinAnleger1

2Settimana

@Esperanza or contacts with Trump 😂

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Tim G.@equity_enthusiast_2103

1Settimana

@KleinAnleger1 unfortunately not

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Julian@MoneyISnotREAL

2Settimana

Yes, your example is a rapid price collapse.

However, the creeping bankruptcy is not to be sneezed at, i.e. with a steadily falling market / sideways movement (with down/up).

You can easily calculate this in Excel and example returns (per day!).

Example: you start with €10,000
Day 1: -10%
Day 2: +10%

10,000 * 0.9 = € 9,000 (end of day 1)
9,000 * 1.1 = € 9,900 (end of day 2)

Ergo €100 loss, although the price remained the same in percentage terms.

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WhenLambo@SoonLambo

2Settimana

In addition to what my colleague @Chandra said, the value can still fall sharply if the Nasdaq theoretically falls -10% for 3 days in a row. It depends on your strategy. If you want to trade, an entry in the next few weeks would be possible if we dip again. If you intend to hold the stock for longer, I would set up a monthly savings plan. Regular additional purchases are then very important. I myself started saving in the amumbo at the beginning of 2025 - with the aim of saving for at least 10 years. Criticism of volatility drag is justified, but rather irrelevant when saving for over 10 years

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