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Re: pleeb01 post# 652

Wednesday, 04/15/2015 9:19:27 PM

Wednesday, April 15, 2015 9:19:27 PM

Post# of 5880
UCO is based on futures. Hence there being contango, which is basically time erosion due to futures rolling over (contract months) continually if you hold a futures-based ETF for a while.

But yesterday was weird, this is a 2x leveraged ETF and oil went up 3% yesterday so UCO should have gone up 6% but it didn't. Only went up 3%. Today, UCO was back to normal & went up 2x the % that oil went up.