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BetaPro Natural Gas Leveraged Daily Bull ETF T.HNU

Alternate Symbol(s):  HNUZF

HNUs investment objective, is to seek daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to up to two times 200 Percentage the daily performance of the Horizons Natural Gas Rolling Futures Index the Underlying Index, Bloomberg ticker CMDYNGER. HNU is denominated in Canadian dollars. Any US dollar gains or losses as a result of HNUs investment are hedged back to the Canadian dollar to the best of its ability. The Fund To be successful in meeting its investment objective during the period, HNUs net asset value should have gained up to two times as much on a given day, on a percentage basis, as its Underlying Index rose on that given day. Conversely, HNUs net asset value should have lost up to two times as much on a given day, on a percentage basis, as its Underlying Index declined on that given day.


TSX:HNU - Post by User

Post by ezra007on Jan 23, 2012 3:49am
426 Views
Post# 19434582

Margin Call Rally

Margin Call Rally

"One factor that may turn the market is something that is seldom discussed by analysts. This is the futures exchange margin. Traders should watch the natural gas futures markets for signs of increased volatility. Futures exchanges like the New York Mercantile Exchange (NYMEX) don’t like volatility especially if it hurts small traders. In order to rid the market of excessive volatility it often raises margin requirements, or the amount of money needed to hold a futures contract overnight.

If natural gas futures begin to have volatile price swings then look for the NYMEX to raise margins. This will increase the cost to hold short positions, forcing many undercapitalized traders out of the market and potentially driving prices sharply higher. This is a wildcard but traders should be aware of this because unexpected changes often turn markets."

 

source: oilprice.com

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