Velocityshares 3X Inverse Natural Gas Etn (DGAZ)

[bullforever]

Hi, WZ

I still don't understand that we already are fully in April trade for UGAZ or DGAZ. How the Contango will affect UGAZ or DGAZ when the March contract rolls into April contract? Now April NG price at $2.956. Do you mean if April NG price goes to $2.5, but UGAZ or DGAZ will be priced not based on $2.5, but will be priced based on lower than $2.5 because of the contango?

My understanding is that UGAZ or DGAZ still will be priced based on $2.5 or whatever NG rice will be.

Maybe I am wrong, but I read many information from the board provided, I still have difficulty to understand your contango effect.


Thanks