/biz/ - Business & Finance

Can one of you stock market professionals explain to me why these single stock leveraged ETFs exist when most retail brokers offer 4x intra-day leverage? Margin available for leveraged ETFs scales to the leverage so you can't trade more notional with them. And the underlying stocks have tighter spreads than the ETFs so that can't be it. So, what is it? The SEC and fund companies go to great lengths to discourage people from doing something as obnoxiously stupid as holding these longer than a day so it can't be that. I seriously don't get it