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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: OldAIMGuy who wrote (1)2/28/1999 11:14:00 AM
From: Larry Grzemkowski  Read Replies (2) of 18928
 
Hi Tom

I have a real stupid question for you and I hope you can help me out. First of all I did start an AIM account with UOPIX in one of my IRA accounts and I can't wait to see the results over the years to come. Now for the stupid question. Let's say the NAZ 100 go up 10%, now that's good because we go up 20% in UOPIX. It's a 2X factor right? So if the NAZ 100 goes down 10% and the UOPIX goes down 20% that's ok too because with AIM that's a buying opportunity. Now let's get stupid and lets say there is a one day drop in the NAZ 100 of 50%, so we loose 100% of our UOPIX? Now let's get really stupid (I know you know where I am going) let's say the one day drop in the NAZ 100 is 60%, so the UOPIX drops 120% and there is a margin call? I know I am missing something so please help me out. Now if someone wants to say that will never happen I say that is not an answer to the question. Please help the confused!

Thanks in advance for your reply.

Larry G
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