Following the "big reversal" of the three major indices on Monday, the market on Tuesday seems to be repeated in the same script, but the difference is that the three major indices did not have enough stamina to rebound and ended up falling collectively.

With the recent periodic failure of the "buy on bargain" strategy, individual investors in US stocks have begun to change tack and are buying heavily into a leveraged ETF--, which is mainly betting on the decline of the Nasdaq 100 index to profit from the fall in the stock market.

According to data compiled by JPMorgan Chase & Co strategists, individual investors bought $76.6 million $ProShares three times short ETF (SQQQ.US) $during Monday's stock market crash. The performance of this ETF is three times that of the Nasdaq index in the opposite direction. It is one of the most characteristic trading varieties in the US stock market, allowing investors to hedge their portfolios without opening new options and futures accounts. At the same time, you can win profit opportunities in the bear market.

In the past five trading days, individual investors have bought about $121 million on SQQQ, the highest level in nearly five years, according to Vanda Research.

SQQQ is up nearly 50 per cent this year amid a collapse in the market.But it is worth noting that if the market rebounds, ETF holders may face heavy losses.While recent gains may help attract retail traders, the ETF has fallen 33 per cent in the past 12 months.

As the Fed meeting approaches and the situation in Russia and Ukraine "heats up" again, the overall performance of US stocks is poor, and many investors may be looking for ways to protect their portfolios, while reverse leveraged funds allow investors to hedge their portfolios at the lowest cost to avoid systemic risk. The following is to hear that you have sorted out several common reverse ETF:

1. Short the S & P 500

$Proshares shorted S & P 500 (SH.US) $When the S & P 500 is down 1%, SH is up 1%

$S & P 500 double short ETF-ProShares (SDS.US) $When the S & P 500 is down 1%, SDS is up 2%

$ProShares triple short S & P 500 index ETF (SPXU.US) $When the s & p 500 fell 1 per cent, SPXU rose 3 per cent.

2. Short the NASDAQ

Shorting the NASDAQ 100 Index ETF-ProShares (PSQ.US) $When the Nasdaq is down 1%, PSQ is up 1%

Double shorting the NASDAQ 100 Index ETF-ProShares (QID.US) $When the Nasdaq is down 1%, QID is up 2%

$ProShares NASDAQ three times short ETF (SQQQ.US) $When the Nasdaq fell 1 per cent, SQQQ rose 3 per cent.

3. Short the Dow Jones Index

$Dow ETF-ProShares short (DOG.US) $When the Dow is down 1%, DOG is up 1%

$DXD ProShares double short Dow Jones 30 index ETF (DXD.US) $When the Dow is down 1%, DXD is up 2%

$Proshares Dow triple short ETF (SDOW.US) $When the Dow fell 1 per cent, SDOW rose 3 per cent.

Risk Tips:

Leverage and reverse ETF refer to the one-day rise and fall of the relevant index, rather than the cumulative rise and fall over a period of time, which is more suitable for short-term trend judgment and hedge strategies, but may not be suitable for long-term investors.

When investors have a clear judgment of the market trend, or there is a need to reduce risk exposure, they can implement investment strategies through leveraged ETF and reverse ETF. However, for investors targeting long-term holdings, it may not be appropriate to use leveraged ETF and reverse ETF to operate.

In addition, in the case of volatile market conditions, leverage will magnify the risk of losses; of course, when the market is unilateral, leverage can also magnify profits. If you want to trade reverse and leveraged ETF, you must first recognize the risks!