Leverage
Controlling more exposure than your capital: through margin borrowing or through leveraged ETFs that reset daily. Leverage multiplies returns, losses, and — critically — volatility drag: a 2x fund does not deliver 2x the long-run return. Systematic strategies applied to leveraged ETFs must be judged on drawdown first.
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Related terms
Leveraged ETFA fund engineered to deliver a multiple (2x, 3x) of its index's daily …MarginBorrowing from your broker against your holdings to buy more than your…Volatility DragThe gap between an asset's average return and its compound return, cau…
Backtests are hypothetical, computed by DeployQuant's engine on minute-resolution consolidated US market data (2021-01-04 to 2026-07-17, $10,000 starting capital, no margin, fees and slippage not modeled) and do not guarantee future results. Nothing on this page is investment advice. Live trading involves risk of loss.