ProShares UltraShort

[theman 10]

hi there

 

What are ProShares UltraShort ?

 

i've noticed everytime the DOW or ES goes up, ProShares UltraShort goes down, and everytime the DOW or ES does down, ProShares UltraShort goes up.

 

Can you buy ProShares UltraShort contracts like you can buy contracts for the DOW or ES?

 

Thanks

[diablo272 10]

http://research.investopedia.com/news/IA/2008/Worried_About_The_Economy_Use_Short_ETFs.aspx?ad=IA_RSS_252008&partner=fincon-rss

[sevensa 10]

hi there

 

What are ProShares UltraShort ?

 

i've noticed everytime the DOW or ES goes up, ProShares UltraShort goes down, and everytime the DOW or ES does down, ProShares UltraShort goes up.

 

Can you buy ProShares UltraShort contracts like you can buy contracts for the DOW or ES?

 

Thanks

 

Have you thought about typing "ProShares UltraShort" in Google?

[theman 10]

I have, acaully before I started a thread I had done that, but as you know, im new to trading, and I thought someone can give me a dummies guide to what it is.

 

thanks

[theman 10]

Thanks diablo272, I looked at that, really useful that was. Just one question, can one buy ETF's? i.e. like from a broker and is it the same as buying 1 contract like the eminis?

 

Thanks again

[jimbob42 10]

It is considered a stock so you would buy it from a broker with of course a commission!

[diablo272 10]

Thanks diablo272, I looked at that, really useful that was. Just one question, can one buy ETF's? i.e. like from a broker and is it the same as buying 1 contract like the eminis?

 

Thanks again

 

Yes you can, but an ETF is an equity, like a stock (can be bought and sold short like a stock, same leverage), and eminis are futures. And the unit size is 1 share, not 1 contract as with futures.

[theman 10]

Thanks for that, that was really useful. So why dont day traders hedge everything they do with this, I think its a win/win situation? I mean, if I were to trade DOW, and it went all wrong, I can trade ProShares Short Dow30 (ETF). Dont know if this makes sense?

 

Maybe day traders do this? But its a nice idea.