Cryptocurrency Q&A
How does 3X ETF work?
How does 3X ETF work?
Daniele
Mon Dec 02 2024
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5 answers
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I'm interested in understanding the mechanism behind a 3X ETF. How does it operate and what are the key factors that make it different from a regular ETF?
5 answers
Daniele
Wed Dec 04 2024
Leverage in ETFs can amplify both gains and losses.
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CryptoAlly
Wed Dec 04 2024
For 2X ETFs, each dollar invested gives investors $2 worth of the benchmark's performance.
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Caterina
Wed Dec 04 2024
Similarly, 3X ETFs provide $3 worth of the benchmark's performance per dollar invested.
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SejongWisdomSeeker
Wed Dec 04 2024
This means that investors can potentially see returns of 200% or 300% on their investment.
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CryptoWanderer
Tue Dec 03 2024
However, it also means that they face 200% or 300% of the benchmark's risk and volatility.
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