It just means that when they finallystop buying semiconductors to fuel datacenters they aren’t even building and the semiconductor stocks crash, SOXS will go up 3x for every dollar the semiconductors go down. Only problem is that no one can guess when that is, even if many are sure it’s coming. It feels like soon but don’t make financial decisions based on what some idiot says on the internet.
comments like this inspire me to become financially literate so that i could understand what was said.
Basically you borrow a lot of stocks from someone and sell them directly.
Then you must buy back the same stock in the future and give it back to them (and a bit extra).
If the stock is cheaper in the future then you earn money. If it becomes more expensive you lose money.
This is how stock traders gamble on stocks they don’t own but think will lose value. They will find a way to gamble on everything.
so this SOX thing is an entity that you borrow the stock from?
It just means that when they finallystop buying semiconductors to fuel datacenters they aren’t even building and the semiconductor stocks crash, SOXS will go up 3x for every dollar the semiconductors go down. Only problem is that no one can guess when that is, even if many are sure it’s coming. It feels like soon but don’t make financial decisions based on what some idiot says on the internet.
thanks and i’m confused by whatever “SOXS” is/means.
This is probably not a good opportunity for you then. It’s not something a beginner should do. Probably I shouldn’t have brought it up at all.
i wasn’t planning on doing anything besides learning.
SOXS is just the ticker symbol. You type it into a site like Yahoo finance and you can learn about the security or trade it at your brokerage.