View Single Post
  #4  
Old 06-09-2009, 01:37 PM
Tightwod Tightwod is offline
Member
 
Join Date: Jun 2009
Location: Whitby
Posts: 40
Default

It is an ETF that is double leveraged on the NYMEX price of natural gas. So when Natural gas goes up 2% in a day you go up 4% less the management fees. It is a riskier investment as it is a play on the actual commodity and also because it is double leveraged. If natural gas goes down 5% in a day, your down 10% + Fees. But if you believe Natural Gas is at a low price point than your upside is doubled. The volume and volatility over the last month has been huge. 20% swings per day are common.
Reply With Quote