Perhaps sensibly, these aren’t on Freetrade that I could see but they are on 212. I’ve no idea what they are or what I’d actually be buying a share in/of but it just makes me think back to 2008 and the weird convuluted things which no one understood which ended up… well you know the rest.
It is just a product which allows short term plays on price movements. The short versions can be very useful to gain from sharp falls in prices. These aren’t CFDs just leveraged share purchases.
These are completely unrelated like a train and a mango.
A CFD ( Contract for difference ) basically a buyer and a seller betting the future price of something will be more or less. If the difference is positive the buyer pays the seller, if negative the seller pays the buyer.
Leverages are basically just a multiplier. So if something goes up one and you have X3 leverage you’ll be up three instead, but that works in reverse, if it goes down one it’s down three.
These are leveraged exchange traded products that follow single stocks (as opposed to ETFs, which follow entire baskets).
So when the underlying stock (Apple,Tesla, Amazon, etc.) goes up 2%, this product aims to double it, by increasing 4% (for the 2x product) or triple it to 6% (for the 3x product). And vice versa.
These are daily compounding products. So whatever happens the next day, the move is once again multiplied by 2x, 3x, or -1x (depending on the leverage factor).
