In the case of 3X Russia, it uses derivatives (typically swaps or futures) to implement much of the leverage. Also, it reserves the right to intervene on very large daily movements, which I interpret to mean that it would not let the fund go to zero if there were a 34% daily drop.
In the case of 3X Russia, it uses derivatives (typically swaps or futures) to implement much of the leverage. Also, it reserves the right to intervene on very large daily movements, which I interpret to mean that it would not let the fund go to zero if there were a 34% daily drop.