#DOGE5L #Eth5L

#ETH5L #doge5l #DOGE5L
Just say it so simply.
1: Bought $100 of doge, today it dropped by 20%, the value of $100 of doge became $80.
If doge5L bought 100 dollars, today the drop is doge*5 times, which is equivalent to 100 dollars - 99%, infinitely close to 0 dollars.
2: The next day, the value of doge at $80 increased by 25%. An increase of 25% on $80 brings it back to $100.
The doge5L increased by 25*5=125% the next day, which is infinitely close to a 0$ increase of 125%, which is equivalent to going to zero.
Initial net value 1 yuan
Case of rising first and falling later
2. Day One: Up 20%
- Underlying asset increase: +20%
5x Long ETF Increase of 20% × 5 = 100%
- New net value = 1 × (1 + 100%) = 2 Yuan
3. The next day: a 20% drop
- Decline of the underlying asset: -20%
- 5x Long ETF decline: 20% × 5 = -100%
- New Net Value = 2 × (1 - 100%) = 0 Yuan
Case of falling first and rising later
2. Day One: Down 20%
- Decline in underlying asset: -20%
- 5x Long ETF Decline: 20% × 5 = -100%
- New Net Value = 1 × (1 - 100%) = **0 CNY**
3. The next day: up 20%
- Underlying asset increase: +20%
- 5x Long ETF Gain: 20% × 5 = +100%
- New net worth = 0 × (1 + 100%) = 0 Yuan
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Replying to the previous user, you said the price is 0.15277 for 5L at around 0.003, and now it's also 0.15277, while the price for doge5L is around 0.00150.
In fact, this part has all been worn away by leverage [尴尬].
So on March 11th, doge was at 0.15277 and 5L was at 0.003.
Currently, doge is around 0.15277 while 5L is only around 0.00150.
The price of the local currency hasn't changed, but the 5L has indeed been halved.