Blinkers

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March 24, 2020
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September 11, 2020

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GraniteShares 3x Short Tesla Daily ETP

Blinkers posted a topic in Shares and ETFs

Hello traders, Relatively new smalltime trader here. I took a position in this ETP on 26th August. The average price was $0.297. The underlying Tesla share price was around $2100, so $420 post-split. As of now TSX is trading at $375. However the short ETP is trading at $0.196. Can someone explain to me how, when an underlying asset declines in price by 10%, a 3 x short ETP tracking that asset price can decline by 34%? I mean I understand there are transaction costs and whatnot but a spread of 60%+ seems extreme. Thanks in advance.
- September 10, 2020
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.

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