Scotty; Just a word of caution , check with your broker they don't
all have the same house rules. The tricky thing with the USPIX is
its leveraged and you can lose fast if the market climbs.
The UOPIX is leveraged long, and you lose fast if the market drops,
there is good and bad points , on the bright side you can have
leverage without going on margin or being worried about a margin
call, ( while you can leverage even more by using margin I don't
recommend it on a leveraged fund )
Now getting out can be tricky too, I can't buy one day and sell
the next, my order has to be in before 2pm EST, and the fund
does not have to accept it IF a trading halt happens by any
of the major exchanges, also I must wait at least one day after
settlement to get out. ( means I must hold two days )
Also they do not have to honor my order to exit or switch funds
if a trading halt constitutes an emergency situation under the
SEC regulations. This is not likely to happen but could,
say in the long fund the market melts down and halts are called
you might not get out even if your order is in early.
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Hence I try to keep enough reserve margin to long or short
the QQQ in a bind; to offset any run against the fund, I take
an opposite position in the QQQ until I can exit.
The rub there is while I can do that to the long side in my
IRA , it's not on margin I need the cash. Also if I'm
in the long fund UOPIX in my IRA I can't short the QQQ,
to take that opposite position. But it works for the short
fund, as long as I have the cash reserves.
Jim
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