This is a fully collateralised Exchange-Traded Commodity (ETC) designed to provide investors with a leveraged exposure to Silver. The ETC provides a total return comprised of 3 times the daily performance of the Solactive Silver Commodity Futures SL Index (SOLWSSI1), plus the interest revenue adjusted to reflect fees and costs associated with the product.
For example, if the Solactive Silver Commodity Futures SL Index rises by 1% over a day, then the ETC will rise by 3%, excluding fees. However if the Solactive Silver Commodity Futures SL Index falls by 1% over a day, then the ETC will fall by 3%, excluding fees.
If you are thinking you will be margin called you wont be as you aren’t buying this on margin, you are purchasing this like any other stock.
The leverage is reset daily so it’s unlikley to go to Zero but it can trend in that direction due to the compounding nature of it if the market moves against the long position that this instrument is.
You can not lose more than you invested in a leveraged ETF.