Volatility decay
Glossary · Leverage
On this page
Definition
Structural drag on daily-reset leveraged products that grows with the square of leverage times variance. Even with zero financing and fees, a 3x LETF in a choppy sideways market underperforms its 3x arithmetic reference.
These definitions describe how ArthaPilot uses each term. For authoritative definitions, consult the SEC, IRS, or a qualified financial advisor.