The leverage tag has no wiki summary.
6
votes
3answers
469 views
How to calculate compound returns of leveraged ETFs?
Forewarning: this is a complete newbie question :-)
I am starting to learn about ETFs by trying to do the numbers. When learning about the compounding effect in leveraged ETFs, I wanted to simulate ...
4
votes
1answer
188 views
What procedure do leveraged ETFs use to limit losses?
I've skimmed through more than one ETF prospectus trying to find the procedure for clamping losses at the limits of an ETF, and so far, no help. Has anyone found a description of the "clamping" ...
3
votes
1answer
141 views
What is the “leverage effect” for stocks?
I've read the so-called "leverage-effect" for stocks models the fact that if a company is leveraged, its volatility should increase as the stock price moves lower and closer to the level of debt.
Can ...
3
votes
1answer
166 views
Calculating portfolio VaR for (custom) leveraged products
I have been searching online for a few days regarding how to calculate portfolio VaR for a portfolio consisting of leveraged products - but so far, I have not been able to come up with anything ...
3
votes
1answer
405 views
What does leverage cost?
Let's say I've developed a strategy that always outperforms the S&P-500, let call it the "magic strategy".
Now I should be golden. All I need is to always have the S&P shorted with the same ...
2
votes
3answers
171 views
Leveraged and inverse leveraged ETFs - what is the exact defintion?
I just had a quick look at the daily returns for a few pairs of leveraged ETFs - it appears that the percent daily returns do not match perfectly. For instance, looking at FAS/FAZ, the returns for the ...
1
vote
0answers
128 views
what is a typical way forex brokerages can provide cheap leverage for their customers?
I'm not very well read in the area of high finance but I'm curious how forex brokerages are able to provide the backing for leverage that they can provide to customers.
Is it possible to do this ...
