4D·

Question about the Nasdaq 100 2x leveraged ETF

I "unfortunately" bought this a few weeks ago and am now busy buying more. My question now is what the situation is with liquidation because of the 2x leverage. Can I be liquidated at all? Is there a possibility of a total loss? Because I don't really care how far the ETF falls and I am also aware that I will make double the loss in the event of a fall, but the question is whether I can lose everything from a certain point? I am currently down a whopping 27%. What happens at 100%? Do I still have the shares or does the ETF disappear from my portfolio? $LQQ (+4,33%)

13 Comentários

Tino@parlania

No way, the nasdaq would have to fall 50% in one day. Trading will be suspended before then

•

Twizzi@Twizzi

Am also about 28% in the minus Buy the simply all the time after

•

Sandy the Squirrel@Esperanza

Am with x3 NASDAQ -19.37% despite after buy. I have always set limit buy, but with NASDAQ x3 in steps of 5. Hit limit buy 5 times today and bought 6 of them today alone and am now invested with 1370 euros or so😂 already -250 euros loss. Yes, I also have to see what I do next

•

WallStreetWhiz@WallStreetWhiz

Why not just use the normal NASDAQ without the headache? I currently have about 100 K in it, and would sleep really badly with such a leveraged thing

•

Ver todas as 3 restantes respostas

tommycashless@tommycash

First inform, then buy for the next time 🫡😁. @Epi they called you!

••

Epi@Epi

@tommycash Who? What?
I don't think they'll be able to cope without me. 😁

••

Kate💎 🙌.@Iwanowitsch

I really wouldn't recommend holding leveraged ETFs in the long direction at the moment and certainly not buying them. If you are really only down 27%, I would realize that. Leveraged ETFs are not suitable as a long-term investment, they are more for experienced traders. Due to the daily leverage effect, they multiply the daily price movements, not the long-term development. Over weeks or months, this can lead to completely different results than expected. In fluctuating markets, leveraged ETFs often lose value even when the underlying asset moves sideways or recovers, due to daily rebalancing. If the market falls, your leveraged ETF loses twice as much but then needs enormous price gains (> than x2) to recover. Search term: path dependency

••

thewolfofgetquin@thewolfofgetquin

@Epi would you share this opinion with realizing the loss and getting out of the 2x nasdaq ETF. i am invested with 4k euro and have losses of 1k😪

••

Epi@Epi

@thewolfofgetquin Difficult. The neg momentum is strong at the moment, it can simply continue to go down. But strong rebounds are also possible at any time with the torn gaps. If you haven't sold yet, you can actually wait for such a rebound and then realize losses. Something is possible up to 18500. But I don't know exactly either. 🤷

••

thewolfofgetquin@thewolfofgetquin

@Epi yes had the same thing in mind thank you 🙏

•