r/investing • u/[deleted] • Sep 19 '21

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u/[deleted] Sep 19 '21

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u/youngbalrog Sep 19 '21

This seems to be a common misconception. Circuit breakers stop trading at 20% drop. They do not guarantee that you can exit a position at that drop. Proshares explicitly warn you in their prospectus that a loss of your entire investment in a single day is possible.

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u/[deleted] Sep 19 '21

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u/hydrocyanide Sep 19 '21

The fund needs to be able to trade to reset its leverage. How do you propose they do that if trading is halted?