PortfolioMetrics

NGXS

- WT Natural Gas 3X Daily Short

Key Information

Earliest date2014-11-17
ExchangeXETR
Instrument TypeCommon Stock
MIC CodeXETR
Websitehttps://www.wisdomtree.eu/en-gb/etps/commodities/boost-natural-gas-3x-short-daily-etp
CountryGermany

About NGXS

WT Natural Gas 3X Daily Short is an exchange-traded product designed to provide investors with leveraged exposure to the inverse performance of natural gas prices on a daily basis. It seeks to deliver three times the daily short performance of the natural gas futures index, allowing investors to capitalize on declines in natural gas prices. This financial instrument is particularly aimed at traders looking to hedge against unfavorable price movements in the natural gas market or to speculate on a potential downturn. The product employs a variety of financial derivatives to achieve its objectives, making it suitable largely for short-term strategies due to the daily resetting of its leverage. It impacts sectors sensitive to natural gas price movements, such as utilities and energy, by providing a hedging tool that can mitigate risk exposure. While this asset plays a critical role for active traders, it is crucial for them to be aware of the inherent volatility and potential for significant losses due to the compounding of returns in volatile markets.