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Best way to bet against the market without shorting?

Shorting generally has minimum equity requirements I can't meet (ideally I would short a large market-leader). Short ETFs don't really give me the "oomf" I'm looking for and need (transaction fees actually affect my profits with the amount I'm investing) and leveraged short ETFs experience nontrivial decay when held for extended periods so I won't actually get even near a *hypothetical* 60% return on a market down 20% over 8 months.

What are some other means of shorting the market with relatively high risk/reward?

3 Answers

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  • 8 years ago
    Favorite Answer

    I'll do you one better and tell you about something that's high reward yet low risk: Put Options.

    This will likely have some requirements as well but if you're playing with more than $5,000 it should not be a problem. Put options can be used to bet against equity, commodities, FX, etc. They are easily one of the best and simplest derivatives a personal investor can use

  • ?
    Lv 6
    8 years ago

    If you have such small money that transactions fees are a significant issue in shorting ETF's and you need more "oomph" than 3x short ETF's to make money, you have no business at all thinking about derivatives or even being short stocks.

  • 8 years ago

    Snapple

    What you're looking for is the proverbial free lunch. Sorry I don't think it exists.. The reason inverse triple ETFs suffer from time decay as there is no free lunch.

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