Leverage: No margin for error
Many Happy Returns
00:00
Leveraged Etf
Scottish mortgage investment trust, which is very popular with uk. Investors, has around 13 % gearing. The actual management fee that you see for the fund don't include the leverage costs because they have to borrow in financial markets. A three times daily levered e t f will go up by three%. But it's a daily leverage which gets supplied, so it's based on the closing price on that day. That's what people fail to understand often.
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