NIO Leveraged and Short 3x ETP

If you want to compare the value per ETP on Tesla Long and on Tesla Short, you must check the yesterday price value on GraniteSharesā€™ website.

3STS: GraniteShares 3STS
3LTS: GraniteShares 3LTS

Value per ETP Track the Solactive Index
Solactive Index have a Stop Loss Mechanism when the price of the ETP fall by 50% during a day.
Stop Loss Mechanism have an effect of starting the calculation like a new day, with a new price of reference.

Just as an example to explain, if the price fallā€¦ creating a Stop Loss event. And then, the price move up and come back at the previous level before falling, the result will not be zero because the exposure have been reduced after SL.

I hope I am clear, otherwise our CEO did several videos to explain all of it: GraniteShares

These GraniteShares are amazing.

Just took a punt on Rolls Royce day before the massive rotation last yearā€¦ wish i had put my life savings in it haha

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Are the NIO x3 broken? Iā€™ve had a market order open for hours and it still hasnā€™t executed. Price has changed significantly since I placed it :confused:

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Ohā€¦ just as I posted I got a msg from the app saying the order was cancelled due to insufficient funds. Whatā€™s up with the execution time?

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Dear @Greyze
As I said yesterday, the market maker said that we should expect some issue until the end of the week for this new ETP. If you want to be sure, you can wait US Market hours to buy NIO.

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Everything working well with 3x NIO this week :slight_smile:
Thanks for your patience!

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I know ETP with 2-3 time leverage you coukd have it in ISA. Apart from this diferences (e.g ISA vs Non ISA AC) is there any difference between Leverage 3XETP and doing it yourself using 3X leverage on CFD.

Also I believe that 3X leverage on CFD will be cheaper as you do not pay the management fee. Is it correct ??

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Iā€™m using this one as itā€™s for my ISA, I wish I could have a ā€˜CFD ISAā€™.

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I do not think you could have CFD alike in ISA as in CFD you do not own the underline assests but you borrow it.

Both ETP 3x Leverage in ISA and CFD are tax free. Between Leverage ETP ISA and do it yourself using CFD which one do you think is better if you intend to minimise the unnecessary cost ?

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Im sure you would have to pay capital gains tax on the CFD version though?
Whereas the ISA you donā€™t.

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AFAIK You do not. CFDs are treated on revenue account rather than capital. So you will not pay CGT

Your trading profits will be taxed as ordinary income and not subject to capital gains tax. Any losses you incur are generally deductible and in some cases can be used to offset against your other sources of income such as employment.

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Hi Mark,

One of the challenge I am facing with 3x ETPs is the bid/ask spread. It is too much in some cases specially with NIO. 3x ETPs are designed for single day trading if the bid ask is above 1 percent then it wipes out the entire profit we are trying to make in a single day trade. Can you please solve this problem?

Many thanks in advance

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CFDs are subject to capital gains tax.

Hi Singlavipesh
Thanks for your comment, I will report this to our Market Maker.

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I also notice this. Sometimes I donā€™t invest on them, just because the Bid-Ask Spread is too wide.

Spreads on this ETP will become tighter over time. As GraniteShares were first on the market to list 3x/-3x ETP on Nio, market makers opens the bracket to protect themselves. With increasing trading volumes, this is coming back to normal.

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Any chance of a carnival or cineworld 2x/3x etf?

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Hi @tradingnoob
Thanks for your message.

I will share your request with our management team in NY.

What I can say, in terms of volume and market capā€¦ these stocks have enough daily volume and market cap to study the feasibility of doing a Leveraged ETP.
There are also listed in EU, which is a requirement from the Market Maker.

Doing an ETP and listing an ETP is a cost and we want to make sure there is enough traction for carnival and cineworld before doing an ETP tracking them.

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Thanks @Marc45

I think with the tide potentially changing with covid and the fact, cineworld especially, is a us/uk focused business there would be a lot of interest in these two stocks and more

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what could be cool is a stock basket ETP like we did with the FAANG, FATANG and GAFAMā€¦ but like ā€œhome cinemaā€ with top 5 stocks like : Netflix, Disney, Cineworld and others :slight_smile: