BNP Paribas introduces 10x ETF:s in Sweden

bln · Dec 5, 2012

The ETF:s have a leverage of 10x (1000%) and are available for the German DAX index and Nasdaq-OMX Stockholm 30 index.

Sort of insane, we had 4x ETF before, but 10x is pure insanity. How long until these go to zero.

http://www.educatedtrading.bnpparibas.se/SE/index.aspx?pageID=61

Moderate · Dec 5, 2012

this is amazing , when are these coming to AMERICA

WinstonTJ · Dec 5, 2012

Quote from Moderate:when are these coming to AMERICA

Never.

Rationalize · Dec 5, 2012

meh. Just trade OTM FOPs.

(if you're into that kind of thing)

zdreg · Dec 5, 2012

Quote from Rationalize:

meh. Just trade OTM FOPs.

(if you're into that kind of thing)

what is fop?

Rationalize · Dec 5, 2012

Quote from zdreg:

what is fop?

FUtures Option.

Edit: Futures OPtion.

(there, I fixed it).

Pippi436 · Dec 5, 2012

Why is it that insane? DAX futures are 25x..

bln · Dec 7, 2012

Quote from Pippi436:

Why is it that insane? DAX futures are 25x..

Futures are targeted towards professional traders that are expected to have deep knowledge and know what they are doing. ETFs on the other side are targeted to the retail crowd which generally do not know how to handle leverage. Lot of people may hurt themselves on these instruments. The ETFs in question may drop 50% in one day and half your capital is gone. Then on top of that you got the deprecation effects.

Moderate · Dec 7, 2012

etfs are amazing because of the limited downside

so $1000 = $10,000 in leverage and u can only lose $1000 that's better than any options contract i know of

if you got a $3k account that $30k buying power interest free doesnt get better than that

Random.Capital · Dec 7, 2012

Quote from bln:

Futures are targeted towards professional traders that are expected to have deep knowledge and know what they are doing. ETFs on the other side are targeted to the retail crowd which generally do not know how to handle leverage.

I don't see how that is a defensible statement given the number of professional traders, funds, and entire houses who have blown up due to leverage issues.