I must admit my ignorance to the innerworkings of leveraged ETF's, but I'm convinced that the reasons why this crashed can shed light on why the market as a whole is turning downward.
Why did XIV crash like this?
Owen Robinson
Luke Morgan
etf/etn's are literally exit scams sanctioned by "regulators" who say caveat emptor when investors get fucked
Robert Carter
EX AYE VEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
Noah Green
Limit hunters are moving onto stocks and indexes
Xavier Ross
wtf is XIV.
Nathan Williams
>that Reddit fag who lost 4 million
My sides
Parker Parker
link pls
Nicholas Jackson
whaaaaat pls post link, some fags in zerohedge comments were talking about 30k losses. it actually might have bben a thread on here lol RIP
Ian White
well its a fucking bet, I dont understand why people are surprised this is going to happen if it literally isnt their first time.
Anthony Jenkins
stock market is going 90% into the red screencap this. We've been going down since 2000.
Jonathan Perez
WE ARE THE XIV MARINES
William Wilson
Lucas Perez
link
Hudson Kelly
my understanding is the volatility short etn/etfs make up a huge chunk of the liquidity and it resulted in a horrible short squeeze
Caleb Russell
kek
Asher Jenkins
kek
Justin Ward
a healthy correction
Joseph Ramirez
Basically the future of LINK bagholders. Amazing.
Adrian Gutierrez
well its getting liquidated by Credit Swiss so theyre prob dead already
Caleb Martin
What the fuck is xiv?
Adam Martinez
yee
Mason Thompson
the easiest way to explain it is that it is a short on volatility. For a long time it was printing money cause the market was just going up and up and up. Until that monday crssh. RIP
Juan Hall
XIV is supposed to track the inverse of VIX
VIX went up more than 100%.
so, class, pop quiz: how much does XIV go down?
Jeremiah Jenkins
60%?
(let's say up 150% -> factor 2.5 -> inverse 0.4 -> down 60%)
Henry Johnson
It was a crypto coin like ripple or bitcoin cash
upvote this if helpful
Ayden Moore
doesn't work like that, the correct answer was 100%, sorry
Josiah Taylor
wft is this, what does upvote mean? Am I even on biz? Feels like I've stumbled on some kind of alternate reality
Carter Brooks
Why do so many people fuck around with VIX/XIV?
Michael Anderson
Is this a gender pronoun?
Ryan Smith
so why is it called inverse if it's not inverse?
Lucas Myers
Ah, so that’s what happened. Wonder who planned this, and if they’ll make a movie about it. Glad as fuck I didn’t follow through on my plan of buying UVXY puts financed by selling SVXY puts. Did that back in 2015 and got burned that year. If I had kept doing that, I would be FUCKED right now.
Lincoln Bennett
Swing trades like volatility.
Jaxson Edwards
Think it through logically, those products are reset daily to match the percent moves of VIX. So if VIX goes up 100%, assets from products tracking it would have gone x2, so lets say from 100 to 200. Wheres that + 100 going to come from? The inverse product, which goes from 100 to 0
Ian Bennett
So what are the chances someone pulls this with something else? There are dozens of double and triple leveraged ETFs out there.
Jeremiah Rodriguez
>When I bought XIV at $95 today, I received a warning from my broker along the lines of "Either you are really stupid, or you are too smart to be using Vanguard. You really shouldn't buy this shit, but we'll sell it to you anyway you dumb fuck." click, buy.
Oliver Jones
XIV tracks VIX futures fund which went up over 100% after hours due to them buying up the entire order book. 1 month futures shouldnt have spiked 100% on a 1 day 100% VIX spike in normal conditions, it all happened after hours.
Now theyre probably stuck trying to unwind this position or face massive losses in the next 2 months if the market stabilizes.
Mason Cox
>Why did XIV crash like this?
Because Veeky Forums went all in.
James Hughes
Liquidity of the contracts and volitility. Make a fortune if you've got altos running your trades. Not so much if you are long term investor.
Samuel Cox
Well, the last expansion of FF XIV was pretty meh, so no wonder it's bleeding subscribers.
Nathan Rivera
Because sports gambling is illegal in the us, so addicts get their fix on short term instruments like this.
Bentley Long
they're shorting volatility. so when volatility is high--like this past week--everyone in this ETF gets buttfucked.
Justin Cook
It's a leveraged ETN. It's a reversed VIX, it goes up with non-volatility and down with volatility. There was volatility, so down it went. I just don't understand how you can trade this? What am I buying when I buy VIX/XIV? Volatility is not a thing, like Apple is a thing.
Joshua Watson
Read XIV prospectus and pricing supplement. And investopedia.com
Dominic Long
Because they're too stupid to capitalize off the volatility of crypto
Gavin Bennett
credit suisse is probably up to some lehman brothers bullshit
Lucas Peterson
You can use large sums of cash and get in and out quick
I have around $50k and I'm able to get in under seconds and out quickly
Christopher Thompson
It already began going to shit at the beginning of 3.0
2.x had the novelty of ARR and the story of Coil going for it, 3.0 was boring as fuck and I didn't give a shit about Alexander so I unsubbed a month in
Xavier Edwards
>What am I buying when I buy VIX/XIV? Volatility is not a thing
You are basically getting the value of the underlying options. Puts/calls.