Adding Leveraged ETFs to Trading Arsenal Gives Traders a Powerful Hedging
February 27, 2013 at 09:15 AM EST
New York, NY -- (SBWIRE) -- 02/27/2013 -- Leveraged ETFs, which provide amplified exposure to different market indices, have given traders a powerful hedging or speculative trading instrument. The ETFs, however, can also be dangerous and should not be held for an extended period of time. These instruments usually provide two or three times exposure to a specific sector or index. The ProShares UltraShort QQQ ETF (NYSE:QID), for example, seeks daily investment results that correspond to twice the inverse (200%) of the daily performance of the Nasdaq 100. This ETF provides short-term traders with a hedging tool in fast markets.