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Originally Posted by Butterfly any experience with those ? |
Yes, I sometimes tinker around with them intra day if things are volatile.
Basically there are three types. Ones that give unleveraged returns, one that give double returns and ones that give triple returns. The triple return ones are good for daytrading only as they suffer badly from decay. Its vital than anyone wanting to use these products is aware of what decay is, rather than me try and explain it, use this
link for a better explanation than I could do
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Originally Posted by Butterfly a mainstream Oil ETF |
For and unleveraged long trade USO is best. For a 2x return DXO is best.
You can short these ETF's in the same was as any other stock.
A 2x leverage short oil to check out is DTO
For a long term hold, when you want to short something, it is better to "short the long fund" for example. If I wanted to short oil now at 2x leverage I would short sell DXO as opposed to buying DTO. This is to avoid decay and to actually benefit from it.
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Originally Posted by Butterfly - a mainstream Gold ETF |
Shorting GLD would be my choice or buying DZZ
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Originally Posted by Butterfly - a mainstream Copper ETF |
I'm not sure if there are any, and if there are, they will be too thinly traded....no volume. Not good.
Better to go with the etf's for the "basic materials" sector. Long would be UYM and the short one is SMN
More info on the ones I mentioned
here and
here