Nasdaq turned back to where it started. And a 3× ETF — no. Why?
I used to think: if Nasdaq fell and then returned to the same price, then the 3× ETF should also return to the starting point.
But there’s an important catch here.
Let’s say you invested $100.
Day 1: Nasdaq drops by 10%.
For a 3× ETF, that’s roughly −30%.
$100 → $70
Day 2: Nasdaq rises by 11.11% and returns to the starting level.
But the 3× ETF gets roughly +33.33%.
$70 → $93.33
So we get:
Nasdaq: $100 → $90 → $100
3× ETF: $100 → $70 → $93.33
The index is back at the starting point, but the ETF isn’t.
That’s because a 3× ETF is designed for the daily result, not the multi-day one. Each new day starts from the ETF’s new value.
Therefore, with strong up-and-down moves, the result over several days can differ noticeably from the simple “Nasdaq × 3”.
That’s exactly the kind of mechanism that interests me in bStocks. At first glance, it’s just another token on the list. But behind it there may be a completely different financial setup.
So now I’m not only looking at the name of the bStock, but also at what exactly stands behind the asset.
Did you know about this 3× ETF feature before?
@BinanceCIS $TQQQB #bstockscis
I used to think: if Nasdaq fell and then returned to the same price, then the 3× ETF should also return to the starting point.
But there’s an important catch here.
Let’s say you invested $100.
Day 1: Nasdaq drops by 10%.
For a 3× ETF, that’s roughly −30%.
$100 → $70
Day 2: Nasdaq rises by 11.11% and returns to the starting level.
But the 3× ETF gets roughly +33.33%.
$70 → $93.33
So we get:
Nasdaq: $100 → $90 → $100
3× ETF: $100 → $70 → $93.33
The index is back at the starting point, but the ETF isn’t.
That’s because a 3× ETF is designed for the daily result, not the multi-day one. Each new day starts from the ETF’s new value.
Therefore, with strong up-and-down moves, the result over several days can differ noticeably from the simple “Nasdaq × 3”.
That’s exactly the kind of mechanism that interests me in bStocks. At first glance, it’s just another token on the list. But behind it there may be a completely different financial setup.
So now I’m not only looking at the name of the bStock, but also at what exactly stands behind the asset.
Did you know about this 3× ETF feature before?
@BinanceCIS $TQQQB #bstockscis
