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FIG 2

Why 2x leverage loses in a choppy market

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$50$75$100$125$150 D0D1D2 D3D4D5D6 THE CHOPPY TRACK — same index path, two funds 1x 2x GRIND! CUTAWAY: one round trip (same swing, both funds start at $100) Same path, same swings — the 2x fund pays 4× the drag every round trip.
🔧 Break it: daily swing 10%
INDEX $100.00 1x $100.00 2x $100.00 GAP even
Big idea: leverage resets daily, so a round trip that leaves the index nearly flat still grinds the 2x fund down — volatility itself is the cost.