VelocityShares Credit Suisse 3X Long Crude ETN (UWTIF)

[DrContango]

TO UNDERSTAND UWTI AND DECAY BETTER

1. go to Khan Academy and watch all the videos regarding futures trading, contango, and yield curve:

http://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/forward-futures-contracts/v/futures-introduction


2. learn about so called ß decay (aka "volatility drift") of levered and inverse ETPs (electronically traded products):

(google “inverse ETF decay” OR "leveraged ETF decay")

three random informative articles:

http://seekingalpha.com/article/104703-explaining-inverse-and-leveraged-etfs

https://www.tradeking.com/education/etfs/leveraged-and-inverse-etfs

http://seekingalpha.com/article/223261-shorting-with-etfs-3-things-to-consider


or watch some vids:

3. ETN vs ETF

http://www.investopedia.com/financial-edge/0213/etf-or-etn-whats-the-difference.aspx

http://www.investopedia.com/articles/06/etnvsetf.asp

http://etf.about.com/od/etfbasics/a/ETN_ETF_Differs.htm



4. How are ETFs created? ETF liquidity: supply/demand

http://www.etf.com/publications/journalofindexes/joi-articles/7258-etf-liquidity-explained.html?fullart=1&start=9

http://sg.ishares.com/understand_etfs/basics/liquidity.htm

http://etfdb.com/2013/what-you-need-to-know-about-etf-liquidity/

(ETF creation/liquidity discussed at 07:10)


5. review my posts on the UGAZ and NUGT boards


6. visit the UWTI webpage and read the prospectus

http://www.velocitysharesetns.com/uwti

http://app.velocitysharesetns.com/files/prospectus/PRICING_SUPPLEMENT_No__VLS_ETN-3_A25_long-form.PDF



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