On Shorting Leveraged ETFs, Part 1

(In the first part of this two-part series, we'll outline the rules and risks of shorting leveraged ETFs. In the next column, we'll apply these principles to a specific trade and review the outcomes.)

A question that is as old as time, or at least as old as five years ago, is, "Why shouldn't I just short both sides of a leveraged ETF pair in equal dollar amounts and sit back and watch the money roll in?" After all, these are all headed to zero over time until they each reach their own death....837 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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