Skip to main content

Kazuyuki Nakayama Comment On Regulatory Notice 22-08

Kazuyuki Nakayama
N/A

As long as you have a margin account, leveraged and inverse funds don't matter because you can use margin leverage and short the funds. The leveraged and inverse funds are much safer to manage the risk rather than using margin because unlike leveraged margin positions, the leveraged and inverse funds never go negative price. In that sense, the leveraged and inverse funds are actually safer than margin. I understand that the leveraged and inverse funds should be for short term traders only and in which case requiring the daytrader's minimum equity of $25000 for trading the leveraged and inverse funds would be sufficient if SEC ever needs to implement some restrictions.