Curious, Tesla close last night, around +1%, today 3LTS is around +6% (the same extra difference of yesterday +6%).
Today 3LTS reached +10%
Yes, because the ETP started today with the “orange move” performance of yesterday evening including on the LSE Opening (or yesterday night reference valuation).
That move, between 16:30 and 21:00 was +2.60% return, x3 is around +7.8%. But 3LTS opened at +10%.
And between 16:30 and today, TSLA is +2.05%, x3 is around +6.15%, (3LTS is atm +5.93%), give or take, its correct.
Trading 212 = -12.54%
Granitshares = +2.71%
Delta = +15.25% → Huge difference even if we divide per 3 (+5.08% equivalent return for the underlying, in the 4,5h extra for the US listing)
The Value per ETP is used as reference for all market participants (including Natixis, the MM).
Depending on the order book and based on any published news/informations before the opening, Price per ETP may be differents than the Value per ETP when the market open.
I can tell you that the Value per ETP followed the explanation I gave you.
The Price per ETP is the result of bid/ask from market participants.
You mix the Value per ETP and the price per ETP.
On Trading212, you have the traded price during market hours (stopped at LSE Closing)
On GS website, you have the end of day Value per ETP (calculated after NYSE Closing)
You must take into account the price move of Tesla on Xetra.
The Market Maker will not wait until NYSE open to reflect it on the price of the ETP.
If you want to compare,
take the price of Tesla Stock from 15.30 yesterday (UK Time) until 15.30 today (UK Time)
and take the price of 3LTS or 3STS from 15.30 yesterday (UK Time) until 15.30 today (UK Time)
The “Delta” includes the 4.5h of extra trading in US (underlying asset) and Premium/Discount of the price, meaning that includes: Value per ETP + Premium or Discount = Price per ETP (+15.25%)
Tesla in Xetra is denominated is EUR, so it must be converted to USD, to be compared to the 3LTS (USD denominated). (We don’t know the FX rate used).
PS. When I mention the US trading hours (14:30-21:00), that is my local time, that most of times is the same as the London (UK) time (atm the summer time is applied in Portugal).
Look the differences between the Xetra and Nasdaq, both in returns and trading volume (maybe also on bid/ask spreads):
I understand from where come the +2.71%, it come from the GraniteShares website.
It is the Value per ETP calculated once a day (after NYSE closed) by GraniteShares.
+2.71% is the value based performance of 13th of September
But what is the -12.54% ??
Is it the price performance of 13th? or 14th?
this is exactly the same thing with the ETP.
With 1 hour more of difference and by 3
Yesterday price return (local currency in USD, before FX conversion to EUR) of 3LTS, shown by Trading 212.
The +15.25% (“Delta”) is the difference between the close price and the end of the day GS Value per ETP, and that +15.25% difference, shows the evolution of ETP price, that includes value per ETP + premium or discount.
It’s like an ETF or Investment Trust, that have the NAV and price value, sometimes the price > NAV, meaning a Premium paid, other times, price < NAV, meaning a Discount.
Yeah, your explanation make sense !
We were saying the same thing in two different way
The best way to compare the performance between the underlying stock and the Leveraged ETP is to take it from 15.30 UK time day 1 until 15.30 UK time day 2