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.
As announced in the April 28, 2020 notice, “Introduction to Transparency Services Initiatives and Webpage”, FINRA will be retiring the current FINRA New Issue Form and will be replacing it with an updated submission platform. The new platform will be available with the same log in credentials used to access the FINRA New Form today and is expected to go live on Monday, September 28, 2020
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,
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...
Washington, DC - The Financial Industry Regulatory Authority (FINRA) announced today that it has established a new Office of the Whistleblower to expedite the review of high-risk tips by FINRA senior staff and ensure a rapid response for tips believed to have merit.
Washington, DC - The Board of Governors of the Financial Industry Regulatory Authority (FINRA) today announced that Richard G. (Rick) Ketchum has been appointed FINRA's Chief Executive Officer.
Washington, DC. - The Financial Industry Regulatory Authority (FINRA) announced today that it has fined Robert W. Baird & Co. $500,000 for supervisory violations relating to its fee-based brokerage business.
Washington, DC - The Financial Industry Regulatory Authority (FINRA) today announced that the Securities and Exchange Commission (SEC) has approved an important change FINRA requested to its dispute resolution rules that will significantly reduce the frequency of motions to dismiss arbitration cases before investors have a chance to present their case.
