An exchange-traded product (ETP) trading in London and Milan was shut down by the fund company, not in the U.S. This highlights the risks of leveraged ETFs, which aim to track an index with a multiple attached, like a 3X ETF that moved opposite to Advanced Micro Devices (AMD) with 3X leverage.

The issue with leveraged ETFs is not apparent until a significant event like AMD’s 30% rally in a day occurs. While great for AMD owners, it can cause problems for inverse 3X funds. Understanding the math of investment loss is crucial, as a -3X ETF will fall by close to 30% if a stock rises by 10%.

Leveraged ETFs, like other tools, require learned skill to be used correctly. Treat them like gambling toys, and your portfolio could be subject to a different type of “triple witching.” Be cautious with leveraged funds and understand the risks involved, as they can amplify both gains and losses in your investments.

Read more at Yahoo Finance: How to Tell If a Leveraged ETF Is a Triple Threat to Your Wealth