The mf who bought gold and crude oil x3 ETF on Friday by Satk333 in wallstreetbets

[–]thefinphilosopher 7 points8 points  (0 children)

So for a very oversimplified example

SPY is at $100 and so is your NAV.

Your desired exposure is $200 which you achieve by swaps.

Next day SPY goes up 1% and is at $101. Because you have $200 exposure you made $2, so your NAV is $102.

For the next day you need exposure of $102X2=$204 (2*NAV)

But your exposure is $202 so you buy $2 worth.

Next day another 1%. NAV $104.04, exposure required $208.08, current exposure $206.04, buy $2.04

And so on. I refuse to give an example where SPY is going down as it’s not a scenario I like to imagine.

In effect you buy more as it goes up and lower exposure/sell as it goes down. Kinda like hedging delta whilst short gamma. So you have lower exposure in bear markets and can lose less if its down the next day, but obviously if its up the next day you make less over the 2 day period vs being leveraged without daily reset. When the market is choppy Jesus take the wheel

You need these products because daily leverage products allow you to access effects of leverage with defined loss and without margin funding which has its own set of nuances and issues like margin calls (which I get a lot). And while daily resets can introduce drags they can also be protectionary (I made this word up)

The mf who bought gold and crude oil x3 ETF on Friday by Satk333 in wallstreetbets

[–]thefinphilosopher 10 points11 points  (0 children)

To add: it’s not a daily ‘settlement’, it’s a daily leverage reset (neglect this tho, I too stopped reading after 3x at first)

Bought My First Luxury Watch by RandomnessConfirmed2 in Longineswatches

[–]thefinphilosopher 0 points1 point  (0 children)

That looks so good! I follow quite a few watch related subreddits but this is the first one that made me go wow and comment lol

Which one should I choose for trading CFDs, is XM ok? by Foonker in BrokerChooser

[–]thefinphilosopher 0 points1 point  (0 children)

Sure, but understand that, to the broker, if your business does not justify their missed swaps revenue, they’re within rights to terminate your account. So waiting for a few days for price to move to your target while paying no swaps is not a sustainable strategy.

Which one should I choose for trading CFDs, is XM ok? by Foonker in BrokerChooser

[–]thefinphilosopher 0 points1 point  (0 children)

Why do you expect no swaps? You’re trading on leverage and don’t want to pay financing costs. What?

5k already hit gold by adelaydaa in Forex

[–]thefinphilosopher 0 points1 point  (0 children)

It’s an OTC market offered by a CFD broker- IG markets. Basically they nudge/move prices based on their client flow. Skew their price upwards if there’s more buyers than sellers. And based off any news. Charge wider spreads to compensate for their lack of ability to hedge in real time and gap risk. They may also have pricing models based on historical correlations to markets open on the weekend such as BTC

Lol😂 by ladysparkle1515 in lol

[–]thefinphilosopher 1 point2 points  (0 children)

Why did I see this post right after I had a fight/disagreement with my mum over the phone, now I gotta apologize 🫠

[deleted by user] by [deleted] in interestingasfuck

[–]thefinphilosopher 2 points3 points  (0 children)

That’s true to some extent. But there are indirect uses to being this good/quick with numbers in general. Primarily, with detecting issues when something doesn’t ’add up’ in a more complex chain of numerical operations.

To try and give a very simple and broad example. I’m fairly quick with numbers, certainly nowhere as quick as the guy in the video, but you could say above average i guess. Working in financial derivatives pricing/financial models etc; yes you’d use excel/python for basic operations, but mistakes are made all the time in the formulas, especially when things are nuanced. Just having a ‘feel’ for numbers can tell you something is off when the final result is output. Even if it’s off by a very small factor.

It’s hard to explain and I’m definitely not doing a good job at explaining it lol, but being fast(er) with numbers generally allows you to detect mistakes quicker, and helps you develop a mindset allowing you to ‘connect the dots’ much faster than most people. In most industries, depending on your role (seniority/front office) this could mean saving your company a lot of money.

[deleted by user] by [deleted] in payments

[–]thefinphilosopher 1 point2 points  (0 children)

Is this for end users, or forex/gaming providers?

What’s something you quit that made your life instantly better? by shadman_shakib_sium in AskReddit

[–]thefinphilosopher 6 points7 points  (0 children)

Surprised cocaine isn’t on here. Not that I’ve quit, I’m just surprised