An individual should be able to make their own choices regarding what their risk tolerance is and what investment vehicles they choose. Leveraged/Inverse funds are only a small portion of my portfolio. I use this type of an investment as a hedge to protect the rest of my portfolio as well as enhance my overall returns. Over the last 50 years that I have had an active portfolio of investments,
My brokerage firm required me to listen to a statement detailing the potential risks for options before I could start trading them. Since options can similarly be used to achieve leverage or inverse returns, I think this is a reasonable requirement for trading in leveraged/inverse funds. At the end of the day, higher expected return comes hand in hand with greater risk. If a given investor isn
While I fully understand the need to have informed investors by placing common investment vehicles such as ESG funds , CEFs, ETF etc. on the list only serves to limit investments from the "common citizen".
In addition artifical barriers such as " broker approval" and tests seem to tilt the landscape toward forcing individuals to use "advisors"
I have been using inverse/leveraged funds for over 7 years now. When I started I was new to trading. I did all the research on the funds as that was my responsibility as a trader. The brokers I use all explained in great detail the risks of trading these types of funds.
Everyone should have the right to trade these types of investments. It should not be based on how much wealth you have.
Washington, DC - The Financial Industry Regulatory Authority (FINRA) today is proposing the expansion of FINRA's Trade Reporting and Compliance Engine TM (TRACE TM) to include all asset-backed securities (ABSs), including mortgage-backed securities (MBSs) and collateralized debt obligations (CDOs).
On May 28th, U.S. markets are moving to a one-day settlement cycle, familiarly known as T+1. On this episode, we hear from four individuals across FINRA about what all market participants need to be thinking about and testing ahead of the transition.
Leveraged and inverse funds are a hedging tool when I think put option premiums are expensive and/or I am unable to directly short a stock or ETF in my retirement accounts. I also use them to make speculative directional bets where I deem appropriate. Position size is always key in volatile products ,that is just common sense from the offset, or quickly learned by actual trading experience...
Leveraged and inverse options should be maintained. They are like any investment product, and all licensed brokers or adviser make clients aware of the volatility decay associated with them. There are currently requirements for different levels of option investing, and a similar clearance could be required for those who invest in leveraged equities.
If you wish to remove risk from the market,
Washington, D.C. - The Financial Industry Regulatory Authority (FINRA) announced today that it has expelled Maximum Financial Investment Group, Inc. of Southfield, MI, for violations arising out of its retail foreign currency (forex) business, as well as for repeated violations of FINRA registration and related rules.
Comment Period Expires On March 1,
SUGGESTED ROUTING
Senior ManagementAdvertisingLegal & Compliance
Executive Summary
At its November 1994 meeting, the NASD Board of Governors approved the issuance of a Notice to Members soliciting comments on the National Arbitration Committee's (Committee or NAC) recommendation to establish an NASD Mediation Program to resolve
