dfx

Leveraged ETFs Might Be the Cause of Late Day Trading Moves

correct. they buy (AKAIK) warrants and then ... some other firms have to go and execute the actual trades. I don't understand when or if stocks get transferred to ownership by the ETF. so its like a time-blur effect : we can say that the ETFs don't buy/sell the market, but they do so indirectly. heavy buying forces heavy buying thru the executing parties.

and that is part of the confusion of modern day casinos ... erm...sorry...finance.

I'm trying to figure out in greater depth how these ETFs actually execute and nobody ever answers me. because they don't know.

this is really important and we need to get to the bottom of it.





On Dec 16 02:29 PM Hodarius wrote:

> Leveraged ETFs don't buy or sell any actual stocks, and therefore
> don't affect stock prices. Leveraged ETFs buy and sell derivatives
> (options, swaps) that are *tied* to stock prices, and therefore will
> affect prices of options - but not the stocks that the options are
> tied to.

Tracking Trouble for the Triple-Levered ETFs

yes, but people don't buy these to track the index per se, they trade them to gamble. the only real reason to wish it tracks the index precisely is if you want to use the index to tell you what might be about to happen.
I'm more concerned with the spastic bid/ask jumping beans.