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AssigneeFOLIOfn, Inc.
InventorSteven M.H. Wallman
Estimating the term…
A computer-implemented system enables performance of leveraged instruments, such as leveraged ETFs, to track their design parameters for longer durations than currently possible. The computer-implemented method issues sells and buys of the leveraged instrument on a daily basis to return the instrument back to an expected value, and to credit or debit cash on a daily basis, such that a combination of the instrument position and the cash position taken together provides an actual return close to the theoretical stated return. This strategy involves bringing the leveraged holding back to an equal value of the unleveraged ETF at the time the leveraged ETF is rebalanced—generally at the close of trading on any given day. This technique allows investors to hold the leverage only through the day, and realize the losses and gains of the leverage that day, and resets the position for trading for the following market day.
A computer-implemented method for a trading leveraged instrument comprising returning a leveraged instrument using a computer back to an equal value of an unleveraged instrument at a time the leveraged instrument is rebalanced by the computer at a close of trading on any given day, thereby allowing an investor to hold leverage only through a trading day, and realize any losses or gains of the leverage that day, and resetting a position using a computer for trading for a following market day, which is calculated by the computer with a multiplier and share quantities for the instrument.
An apparatus for trading leveraged instruments comprising:
A non-transient computer readable media having stored thereon a computer-implemented method for trading leveraged instruments causing a central server to interact with an investor computer and a database, wherein said central server issues sell orders and buy orders of the leveraged instrument on a daily basis to return the leveraged instrument back to an expected value and to credit or debit cash on a daily basis, such that a combination of a position of the leveraged instrument and a cash position taken together provide an actual return close to a theoretical stated return.
Dependencies are inferred from the claim text.