Principally I use inverse and leveraged funds provide a way to hedge against market downturn or increase the benefits from market movement in one direction. They are not complex... if one reads about how they work and their prospectus they are straight forward to manage. A microwave is complex until you read the instructions. Understanding the risk/reward of these products is not complicated
I know for sure that having specialized rules and red tape for complex leveraged and inverse products does not actually reduce the risk faced by retail investors. Access to leverage can even be used to reduce risk in an overall portfolio, as numerous other commenters have noticed. When implemented as part of a well planned strategy, leveraged and inverse products can provide crucial diversifying
As a retail investor, who has been actively trading in the last 2 years and these regulations are very much targeted at, I do not agree with the proposed rule/guidance changes. FINRA has already placed many barriers to retail investors in the form of PDT rules, $25k capital requirements, etc. At no point in my journey as a new trader have I felt that the restrictions benefitted me or protected me
I invest in Leveraged ETF Options as a strategy and occasionally in the Leveraged ETF's themselves. I have been doing this for over 15 years. I have achieved a net profit every single year since I’ve started using them regardless of whether the market is up or down. I strongly believe that I should be able to choose the investments that are right for me and that all public investments
(a) Authority for Initiating a Trading and Quotation Halt
In circumstances in which it is necessary to protect investors and the public interest, FINRA may direct members, pursuant to the procedures set forth in paragraph (b), to halt trading and quotations in OTC Equity Securities (as such term is defined in Rule 6420) if:
(1) the OTC Equity Security or the security underlying an
As long as the investment vehicles are legal, legit, and risk fully documented, I see no issues in letting a typical / average investor make their conscious investment decision. I OPPOSE RESTRICTIONS TO MY RIGHT TO INVEST. As an average investor (Im currently using/ investing in proshare shorts/long 3x etf), I find most information available online and typical financial professionals discussed
"Protecting us from ourselves" -- i.e., barring us from choosing to take a on position of high risk and high reward -- has no place in America, especially in an area so obviously volatile as the equity markets. Existing regulations well protect us citizens from being duped. Adding regulations to try to protect us from financial losses is a patronizing fool's errand, which will only
What is more diabolical? Taking away the ability for everyday anyone's to protect their wealth, and maybe even obtain large gains during a market bear, or not making the knowledge about these products more readily available for the everyday anyone to educate themselves on how to use them properly, and to their best advantage. Or is doing both the most diabolical?
These assets are not
SEC Approves Amendments Permitting FINRA to Halt Trading by Firms Otherwise Than on an Exchange Where a Primary Listing Market Has Issued a Trading Pause Due to Extraordinary Market Volatility
SEC Approves Amendments to FINRA Trade Reporting Rules on OTC Equity Transactions Executed Outside Normal Market Hours
