3 ms·

> use the money to buy a 3x What's a 3x?

• MauranKilom 4y ago
  Someone who is willing to enter a "NASDAQ will go up" bet with you, where they pay you 3x the amount it went up when it does, and you pay them 3x (or some other number you agree on) the amount it went down when it does.
  • MockObject 4y ago
    So, someone predicting a sudden downturn in a bull market?
    • imustbeevil 4y ago
      QQQ is security that tracks the NASDAQ (NASDAQ 1% up = QQQ 1% up). TQQQ is a security that tracks the NASDAQ x3. (NASDAQ 1% up = TQQQ 3% up). SQQQ is a security that tracks the NASDAQ Inverse x3. (NASDAQ 1% up = SQQQ 3% down). In the context of "using leverage to provide better than expected returns in a Bull market", someone can buy TQQQ, securitize/create derivative (this is exclusively what crypto does) that returns 1.5 times the NASDAQ, sell you that derivative, and if the NASDAQ goes up 5% (TQQQ 15%) you get 7.5% and they get 7.5% (and your money). If it goes down, you lose everything and they keep the money you gave them.