“11.15”
SQQQ has large holdings in bonds and uses derivatives to get 3x inverse QQQ. How they do it and what derivatives they use does not appear to be public knowledge. I was ignorant and just assumed they were shorting stocks.
I have never traded SQQQ so never bother to get the details.
Now I see they pay a quarterly dividend which at this level is pretty hefty.
How are they generating the cash flow for the dividends? Must have some terrific algorithms!
sqqq and tqqq are the most direct way to take advantage of the movement of the NDX100
Both are 3xetfs..... one up t and one down s
” generating the cash flow for the dividends?”
great algos and .... they re-balance all the time ..
When they do, they take a charge, like getting a %of a % of a whole lot of trades. Both are susceptible to (slips).
The qs are not for holding. They are for swinging.. yes, that's a real trading term ... I swing trade.
The Qs are great to use with options,especially the weeklies.
It's a fast passed, adrenaline filled, habit forming experience.
Anyone interested in swinging the Qs should talk with their broker or a financial professional they know and trust.
Trading QQQ is a better fit for many people, although QQQ is an advanced derivative also, the moves are a bit slower and
less addictive. QQQ can be held over night without AS MUCH risk.
I think Eccl 10:2 can give a bit more insight on QQQ,
more of his space I think. remember .. not financial advise... for ENTERTAINMENT only