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pete11

10,492 Posts.

629

06/01/19

15:16

Post #: 37037821
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Originally posted by WhiteRhino ↑

Originally posted by pete11
Hi guys just wondered the day the sp500 was up 5% bbus should have gone up 12% the 2.5x leverage, yet it barely went up 1-2% why was that?

This opening on Monday the sp500 was up 3.4% so bbus should be down like 8% minimum, yet it probably won't be

Can someone tell me why that is?
Why doesn't bbus exactly match the 2.5x leverage it says it should, I understand about the 1.38% management fee, but some days bbus doesn't even come close to the 2.5x sp500 leverage it claims to have
I think the 5% up day you are referring too, you actually mean BBUS should have gone ‘down’ 12% not ‘up’ as you mention. I think from memory the day before the S&P fell like 2-3% but the ASX was closed on that day, so BBUS had a catch up day.

Also, BBUS is based on Futures that trade all day long. S&P may close up or down 2-3% but Futures then may move in opposite direction. BBUS trades on real time data, not close of S&P price.

accumulating around $6.00. Big day moves, next leg down coming soon...

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I've been trying to find a site that shows the live sp500 futures but I can't seem to find one, can you post the one you use?

According to my calculations bbus should be around $5.58 Monday from its $6.08 close, because there are no sp500 futures open before our asx open Monday is there?

Value at posting: 2,531.9
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