A.I.M. Users Bulletin Board

[ls7550]

Most people are dissuaded from using leveraged products. There tends to be considerable hostility if you even just mention the name to many. In the US they're (SEC) tightening up on them even further, limiting to 1.5x but where some may still be able to maintain their 2x products with a bit of hoop jumping. http://www.bloomberg.com/news/articles/2015-12-11/leveraged-etfs-face-sec-squeeze-in-plan-to-rein-in-derivatives

Some of that has been reflected over here in the UK. Some time back when I went to trade a LETF with one broker I had to go through a online questionnaire and disclaimer type process to 'prove' I was a 'sophisticated investor' that was aware of the risks ... in order to reduce some of the LETF holdings I already held!!!

Sooner or later I suspect they might fade from being available to retail investors. Which would be a shame as used sensibly and they are another means to diversify. And would be daft considering that alternatives such as Options, Futures, Spreadbets ...etc cater for far more leverage potential.