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I trade the Pro Funds Ultra OTC for the long side and Pro Funds Ultra Short
OTC on the short side.
(Exited my Ultra Short positions today by the way)
But for the Ultra OTC (long), the fund value would display negative values
long before the NASDAQ would reach zero due to the futures and options
leverage which helps the fund maintain a Beta of 2.
So the obvious question is, how would that work if the nasdaq continues to
decline. The fund value could not have a negative value, because how could
one then buy it. It could go negative however due to the leveraged effect of
the futures and options contained within the portfolio.
Stupid question I'm sure, but if someone could enlighten me I'd appreciate it.
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