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Leveraged ETFs Have Become a Day Trader's Dream Come True

Aug 16, 2009 - 9:35 AM EDT

ETF Daily News submits:

With all the criticism about leveraged ETFs, not much has been said about how much of a great investment tool they are. Many day traders have relied on margin for decades to gain leverage through their daily trades. Using margin with your brokerage account can become very costly and not to mention there are many account limitations within them. Leveraged ETFs provide a low cost product to day traders with the ability to capture massive daily gains.

Direxion the leader in 3X leveraged products has several ETFs that day traders use. The most popular ones are the Direxion Daily Financial Bull 3X Shares (FAS) and the Direxion Daily Financial Bear 3X Shares (FAZ) which have been at the center of attention with the financial crisis. Most of the 3X leveraged funds are very liquid and provide for easy trading.

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Source: Seeking Alpha (Aug 16, 2009 - 9:35 AM EDT)