Market Swings

[75playa]

If you spent 100k on TZA at the bottom and cashed in today you would wait for it to clear and would have made 38k.

If you shorted the TF (Russell 2k mini) at the top your 100k would have made you roughly twice as much and your funds are available the second you exit the trade and TZA is a 3x. It is over five times the payout as a singlex.

It is all about purchase power. You get anywhere from 5 - 10 times purchase power with futures. One TF contract pays one hundred dollars for every point of movement using 4k of margin. You can double your investment every forty points of movement. 40 points on TF equates to around 3 points on TZA so you can do the math. If you used that same 4k of margin on TZA and bought or sold you would make 1.7k for every 4k you make on futures.

Using TZA then it is a ratio of 4:1.7

75