Leverage Decay: The Index Came Back, You Didn't
Enter daily percentage moves to see what a 2x leveraged product is actually left with. It tracks twice the daily return, not twice the period return.
A 2x leveraged product tracks twice the daily return, not twice the return over your holding period. Those sound similar. They are not.
The default sequence is -20, 25: down 20%, then up 25% — the index lands exactly back where it started. The 2x product falls 40%, rises 50%, and ends at 90.
What it charges you is not a fee. It is the volatility itself. The longer you hold and the choppier the ride, the wider the gap — which is why it is built as a short-horizon trading tool, not a position. That is not an opinion; it is the product’s design.
同一段行情來回三次：指數還是 100，兩倍槓桿只剩 72.9。震盪愈多次，缺口愈大。看這個概念是怎麼來的 →
Source