leveraged (2x, 3x) index funds. How do they work?
In: Economics
Example for a 2x leverage fund.
You start with $100 from investors. Instead of buying $100 worth of stocks, you borrow another $100 and buy $200 worth of stocks.
As the investor you are 2x leveraged as for every $1 you put in, you have $2 worth of exposure to the underlying stocks in the fund.
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