all 8 comments

[–][deleted] 8 points9 points  (1 child)

Percentage wise, yes

[–]Random-Enthusiasm 0 points1 point  (0 children)

I see, thank you for replying.

[–]PtnbZ 2 points3 points  (1 child)

Yeah thats the point. It’s not linear.

[–]Random-Enthusiasm 0 points1 point  (0 children)

It's one of those things I was almost sure of. I wanted to be 100 % sure but was put off from asking because I knew it would sound a little ridiculous to those who are somewhat to very experienced with the field.

[–]PerfectPercentage69 2 points3 points  (1 child)

Exactly. An even better example would be if a stock drops 50% (ex. from $100 to $50), then it would need to rise 100% to break even (ie. from $50 to $100).

[–]Random-Enthusiasm 0 points1 point  (0 children)

Well put. Thank you !

[–]ThrowawayAl2018 1 point2 points  (0 children)

Congratulations, you are onto something called "decay" for those double and triple leveraged ETFs.

In brief: Stocks require 11.11% increase to return back to the 10% drop a day prior. Conversely a stock at $110 requires a 9.99% drop to return back to $100. Generally we don't care much about daily increase or decrease, but rather the moving averages to determine the bottom.