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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?


To: Kayaker who wrote (117846)2/16/2009 11:33:43 PM
From: Cogito Ergo Sum  Respond to of 206125
 
Yep, That was my 'financial instruments' comment ... some kind of derivatives obviously are in use.. might be easier to stick with old 1X XGD



To: Kayaker who wrote (117846)2/16/2009 11:48:28 PM
From: axial  Respond to of 206125
 
"You can't get the 2x leverage without futures (or options)"

Exactly!

So contango and backwardation don't just affect leveraged ETFs for crude oil - IMO they affect all leveraged commodity ETFs.

Jim