The Danger Of Leverage: A Case Study Using The JNUG ETF (Downgrade)
Source: SeekingAlpha
2026-02-05 13:48:38 ET
Leverage involves using a small amount of force, resource, or capital to achieve an oversized outcome. Financial leverage involves using borrowed capital to increase the potential return on an investment. Long options and swap contracts can provide leverage, allowing investors, speculators, and market participants to control a larger long or short risk position with minimal capital. However, since there is no free lunch in markets, leverage is a double-edged sword: the pursuit of magnified profits can lead to outsized losses when an underlying asset fails to perform as expected....
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The Danger Of Leverage: A Case Study Using The JNUG ETF (Downgrade)
Direxion Daily Junior Gold Miners Index Bull 3X Shares
NASDAQ: JNUG
JNUG Trading
7.08% G/L:
$348.3825 Last:
141,037 Volume:
$349 Open:
