07-30-2021, 01:45 PM
Ken,
3X leverage pretty much did exist back then. Buy tech stocks in your margin account. Rules vary but you can buy 2-3 times your equity. When the stocks lost about 50% of value your broker sold it all, kept what he needed to be even, and maybe sent you a bill for the balance if he didn't execute it fast enough. If you were lucky you were just zero balance. That happened to many people as margin was getting popular during the tech bubble. It's popular again today. Triggers are faster now and they force you to liquidate some before you are completely broke.
Not exactly a 3X leveraged ETF but close enough.
3X leverage pretty much did exist back then. Buy tech stocks in your margin account. Rules vary but you can buy 2-3 times your equity. When the stocks lost about 50% of value your broker sold it all, kept what he needed to be even, and maybe sent you a bill for the balance if he didn't execute it fast enough. If you were lucky you were just zero balance. That happened to many people as margin was getting popular during the tech bubble. It's popular again today. Triggers are faster now and they force you to liquidate some before you are completely broke.
Not exactly a 3X leveraged ETF but close enough.