Leveraged ETFs are among the safest and least complex ways for a small personal investor to hedge and/or take on more risk; other options, such as investing in particular individual stocks to micromanage the risk in your positions is much more error prone for the average small investor in comparison.
The FINRA qualification and registration requirements are set forth in FINRA Rules 1210 through 1240.1 These rules, among other things: (1) require the registration of individuals as representatives or principals; (2) allow for the permissive registration of associated persons of firms; (3) establish a waiver program for individuals working for a financial services industry affiliate of a member
The government should not and does not need to protect investors by limiting the ability to hedge risk. In fact taking away the ability to hedge risk creates a more perilous environment. I strongly disagree with any limits or gates being established by the government to help people save them from themselves.
Comments: I am not confused on these inverse and leveraged products. I know how they work and like trading them without having to worry about the risks about losing more on margin. It allows better participation from retail traders who are educated on the risks and rewards of these products.
Restricting trading strategies is fundamentally unfair. There is no legitimate reason to restrict leveraged or inverse funds. Investors always must assume the risks of their investment choices. Unsophisticated investors may not understand systemic risks, but it does not mean investors should be entirely prohibited from investing altogether.
I should be able to invest my money how I see fit without proving to the government that I know what I am doing. I know the risks mean that I can lose my money and I am willing to let that happen based on the rewards I might receive for taking those risks.
Although these funds may come with increased risk, I believe individual investors should be allowed to decide for themselves, if inverse and leverage funds are suitable for their investment strategy. They already come with warnings of the risk and individual investors should be responsible, not regulatory agencies, for making investment choices.
You have no right to tell people what they can and cannot invest in. The understanding of the risks in leveraged and inverse indexes is known at the time of purchase. Each person is solely responsible for their own investments and risks. With each of these suggestions you erode any faith in a free market.
anyone who buys leverage etfs should be advised by their broker that their is risk but it is a good investment i love leverage but you need to know what you are doing please do not ban this i like taking on risks but i have strategies besides options which are way more risky
Each investment carries its own set of risks. The basis of the free market is the principle that investors must bare the consequences of their investments whether the results are beneficial or detrimental. Providing information of risks is a beneficial service, but trading restrictions could harm smart investors with limited resources.
