Using futures contracts and other derivative instruments, 2x or 3x ETFs attempt to magnify the performance of an index, with the goal of achieving the result daily. Because they also compound daily, they are not usually held for more than a few days.
These are also called leveraged ETFs because they use margin, futures contracts, and other derivative instruments to give an investor this magnified exposure. They give you two or three times (respectively) the profits but also two or three times the losses, so one must be very cautious when dealing with them.
Inverse ETFs, whose performance is opposite that of the index, are also available with double and triple exposure.
SEP IRA is a benefit for employees that uses employer contributions to fund retirement investment accounts for employees
Diversification is the strategy of owning securities with different risk attributes to mitigate total risk in a portfolio
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Options can be a valuable tool in portfolio management, but investors should be well-versed in how options work