Australia's largest stock trading and investment forum Australia's #1 stock forum

?depends on dilution as well

First 5 Last

Share
Profile

Follow
darrenrr

2,475 Posts.

276

04/11/24

07:31

Post #: 76442194
Share

Originally posted by jokerlee: ↑

Hi everyone.

I am not an expert in stock trading. However I would like to learn more about tools that allows me to short the Nasdaq that isn't too complicated with low fees.

Please comment on the following points .

1. From what i know ETFs are meant to be quite safe in general as in it's very unlikely that an ETF get wipe out unlike a small cap or a struggling company.

2. SQQQ have a 3x inverse exposure to the Nasdaq. On 12/2/2016 SQQQ was priced at 105USD and NASDAQ hit 4337. Could that mean when Nasdaq goes back down to 4337 then SQQQ will be around 105USD again? I know these ETF is meant to decay overtime but i don't understand what that really mean or what causes it. How much do you think SQQQ will be worth when the Nasdaq drop to 4337 again?

3. What causes the decay of these leveraged ETF?

4. If the ETF isn't Leveraged does it mean it wont decay? (take HACK BetaShares Global Cybersecurity ETF for example)

5. Is it smart to hold SQQQ for a long term? 1-2yrs maybe even 3yrs.

6. Any thoughts of BBUS. I know this one tracks the S&P500 and is around 2.5x leveraged? I have an account with Stake so buying SQQQ wont be a problem.

Thanks for your input

A.B

Expand

?depends on dilution as well
Upvote

Reply

Top Stories

Market Close: CBA's market cap shows a market hungry for safety – suggesting Santa mightn't drop in

Listen: HotCopper Wire Podcast 030 – Least surprising RBA 'hold' ever and the Huang Chicken effect

SWM

Seven West's Kerry Stokes out the door; despite TV sports dominance, the market shrugs

CBA

Commonwealth's market cap is back to $300B. What does that tell us about the next two months?

Market Open: ASX to fall flattish red, rounding out a fairly boring week

HotCopper Highlights: Stokes says buy to Seven West; Melbana drills a duster & more

HAR

Haranga Resources kicks off Phase II drilling at South Ibel; 2026 RC program on horizon

LU7

Lithium Universe inks deal with Taiwanese solar panel recycler to boost tech offering

HotCopper Trends: Mining-heavy focus on Renascor, Red Sky, Haranga & more

Week 45 Wrap: Where is the XJO headed for Xmas? Who knows, but Labubus are cheap

First 5 Last