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$T-Rex 2X Long MSTR Daily Target ETF (MSTU.US)$ When buying ...
$T-Rex 2X Long MSTR Daily Target ETF (MSTU.US)$ When buying MSTU, which is better, buying it normally or buying it with margin financing and securities lending at double the amount of MSTR?
I would like to know the advantages and disadvantages 💦
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もち735 : Margin financing and securities lending charges an annual interest rate of 4.5%, but there is no risk of deviation from the original value and no decreasing effect. If held for more than a week, it seems that there will be a profit margin in margin financing and securities lending.
MSTU is suitable for day trading. The benefit is that there is no additional margin call even in a significant decrease. However, the drawback is that due to leverage on price movements, it can be too risky to want to cut losses during a decline.
With MSTU, a decrease of -20% in one day is possible.
In margin financing and securities lending, leverage is applied based on the number of shares held, not on price movements, so the percentage display during a decline is proportional, and it is less likely to panic sell, which I think is an advantage.