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Three-fold bull and three-fold bear are leveraged products that greatly a。ify指数onential movements.
The difference is the direction to aim.
- Three-fold bulls aim for profit by increasing the index
- 3 times the Bear aims to profit in the fall of the index
For example, if the target index such as Nikkei average rises 1% in one day, the three-fold bull is designed to rise 3% roughly.
On the other hand, if the index drops 1% in one day, the three-fold bare is designed to rise 3%.
However, this is a product based on "Daily Movement".
It is not three times longer than the index.
Rather, in the market where you can move up and down, the value may be sharpened by time. It is a so-called reduction.
In this article, we will organize the differences, mechanisms, merits, dangers, and usages that beginners want to avoid.
What is Triple
Triple is a product that is easy to profit when the target index rises.
“Bull” means a strong market.
In the stock market, the name BULL is used for products that aim to rise.
As an example, the target index will move as follows in one day.
| 1-day ctuation of target index | 3 times |
|---|---|
| +1% | +3% |
| +2% | +6% |
| -1% | -3% |
| -2% | -6% |
It can be taken largely if it is above.
However, I eat it very much when I get down.
It is dangerous to see this light.
What is Triple Bear?
3x Bear is a product that is profitable when the target index falls.
"Bea" means a low price.
It is a product to aim for profit on the lower side.
| 1-day ctuation of target index | 3 times more |
|---|---|
| +1% | -3% |
| +2% | -6% |
| -1% | +3% |
| -2% | +6% |
We aim for profit when the market falls.
However, if the price rises, the loss is 3 times faster.
It may be used for lower hedging, but it should not be seen safely byッジ the hedge.
The value movement is quite rough.
The difference between 3x bull and 3x bull
It is easy to understand when you make a difference.
| 項目 | 3 times | 3x Bear |
|---|---|---|
| Direction | 上昇 | Close |
| Market rise | Profitable | Easy to lose |
| Market drop | Easy to lose | Profitable |
| Main Applications | Short-term trading | Short-term trading, short-term hedge |
| Notes | High loss at lower drop | High loss at rise |
Both are common in terms of short-term risk.
The first part of "three times" is heavier than bull or bare.
What is leverage?
Leverage is a mechanism that takes large value movement with less funds.
Three-fold products will increase the movement of one day of the target index to about three times.
Estimate of daily movement = Change rate of target index × 3For example, if the index is 2% in one day, the 3 times the product is a 6% movement.
Profit is also included.
Loss is also included.
The most important thing in the leverage product is to see both.
It is close to the actual situation to think of "three times a product" rather than "three times a profit".
Why is it dangerous?
There are three main features:
- High value movement
- Customized Reset
- Long-term ownership
It is rare to move a few percent in a day.
Even if it is an ordinary index investment, even if it is a small value movement, the profit and loss will be inflated at once in the three-fold product.
For example, if the target index is below 3%, the 3x bull is about 9%.
100,000 yen per day
Damage when the market is not read is faster than you can imagine.
3 times daily and 3 times longer
This is the best place for beginners.
Three-fold bulls and three-fold bears are basically designed based on daily movement.
In other words, the following products:
3x 今日のonentをctuationsIt is not possible that the index rise or fall rate is tripled when seen in the long term.
Because the price will change every day.
If the market is moving strongly in one direction, the product may grow greatly.
However, in the market, it becomes easier to reduce.
Example of price
Simple numbers.
The target index starts with 100.
10% rise on the first day and 10% fall on the second day.
| Date | Index | Index Movement |
|---|---|---|
| Start | 100.0 | - |
| Day 1 | 110.0 | +10% |
| Day 2 | 99.0 | -10% |
The index is not returned to 100 and it becomes 99.
Next, think about the three times bull.
| Date | 3 times | 動き |
|---|---|---|
| Start | 100.0 | - |
| Day 1 | 130.0 | +30% |
| Day 2 | 91.0 | -30% |
The index is 99, but it is 91.
It is quite sharpened.
This is the reason why the leverage product is weakened in the market that can move up and down.
Likewise, bare products are also reduced by round-trip.
Not only does the direction hit, but it will be easier to lose even if the market is rough.
Why Short-Term
3 times BULL BEAR is a short-term market.
For example:
- Day Trade
- Short-term trading
- Short-term position before and after events
- Tの hedge on the lower drop surface
It is not a product centered on long-term asset formation.
Of course, some people use it.
However, it is a story of a person who decides to deal with the loss, retention period, amount of money, and market sudden change.
It is not a product that a beginner thinks that "If you have a long time, it will be a return".
Benefits
Not just dangerous.
Three-fold bull bear is easy to use for short-term trading.
| メリット | 内容 |
|---|---|
| High financial efficiency | Great value movement with less funds |
| Easy to express direction | Bare if you climb |
| Available for short-term hedge | Some losses can be offset by bare at the time of drop |
| Easy to buy and sell products | If you are a listed product, you can buy or sell it with a securities account. |
However, the merit is easy to find if the direction is short.
When the direction is removed, or if it is broken down, it will be bitter.
Things to note for beginners
1. I don't think "three times profit"
This product is not a product that tries to triple the profit.
Losses can be reduced at 3 times.
2. Do not assume long-term ownership
Because it is a smart reset mechanism, it is easy to assume the value movement in long-term holding.
I am not good at the price that can be moved up and down, especially lying.
3. Decide the cutting line
You need to decide where to withdraw before buying.
Leverage products are easy to lose while you are lost.
4. Don’t put too much money
If you buy largely with the same feeling as normal ETF, it will be difficult to bear the value movement.
3 times the product is large enough for a small amount.
5. See cost
More expensive than general index ETFs.
In short-term trading, spreads and trading timing are also effective.
Points that beginners can easily misunderstand
| misunderstanding | In fact |
|---|---|
| Three times longer than the index | Design to triple the movement of the indoor cable |
| If the price is returned, the product is original | You may not return the price |
| Bear Is Safe Hedge | Great damage in rising market |
| Smaller risk | ctuation rate is large |
| Easy for short term | Short-term judgment and breakdown required |
In particular, it is dangerous to have to return.
There is a situation where a strategy to wait for a regular index investment, but it is not possible to handle it in the same sense because there is a reduction in the 3 times bull bear.
How to use
If you want to use it, you want to decide the following rules first.
- How many days
- What if you lose? What events are you looking for?
- Which index is targeted? How many% of funds are used
The price movement is too big to buy with "I'm going to rise up" and "I'm going to fall down."
Leverage products have a large return when the market is seen.
3x Bull is a product that aims to profit by increasing the index.
3x Bear is a product that aims for profit in the fall of the index.
Both are designed to triple the movement of the target index one day.
The most important thing is that it is not a product that simply triples in the long term.
In the market where you can move up and down, the asset is easy to be sharpened by the reduction.
This is the first thing for beginners to learn.
Leverage not only benefits but also lossesThree-fold bull and three-fold bears are high-risk products used for short-term trading and temporary hedges.
In the center of long-term asset formation, it is a product that you want to think with a small amount, a short-term rule if you use it after understanding the mechanism.