---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/39951123.md"
description: "$XL2CSOPHYNIX(07709.HK)  My understanding of the decay in this leveraged long instrument is mainly due to the multiplier effect. For example, if the underlying stock rises 10% and then falls 10%, the underlying's return is (1+10%)×(1-10%)=0.99, a 1% loss. For a 2x leveraged instrument, it's (1+20%)×(1-20%)=0.96, a 4% loss. This stock maintained a rhythm of a big up day immediately followed by a big down day from late February to early April, causing the underlying to hit new highs while this is still 20% away from its peak.What other factors do you think cause decay? 🤣"
datetime: "2026-04-16T01:31:29.000Z"
locales:
  - [en](https://longbridge.com/en/topics/39951123.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/39951123.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/39951123.md)
author: "[洒家特地来赚刀乐](https://longbridge.com/en/profiles/20134100.md)"
---

# $XL2CSOPHYNIX(07709.HK)  My understanding of the d…


### Related Stocks

- [07709.HK](https://longbridge.com/en/quote/07709.HK.md)

## Comments (10)

- **杰哥慢慢变富 · 2026-04-16T02:48:18.000Z**: In the long run, the wear and tear is extremely significant. Short-term speculation is fine.
- **luckyGoldie · 2026-04-16T02:28:13.000Z**: There's also exchange rate erosion.
  - **洒家特地来赚刀乐** (2026-04-16T02:29:49.000Z): This should have a very small impact, the fluctuations are only a few basis points.
- **炒美股养家666 · 2026-04-16T01:38:39.000Z**: Suitable for one-sided market trends
  - **洒家特地来赚刀乐** (2026-04-16T01:57:04.000Z): Yes, so maintaining this daily increase of a few points is good as long as it's not in the red. Looking at the underlying stock, it's just been fluctuating intraday recently, which shouldn't have much
- **sunshine1224 · 2026-04-16T01:38:29.000Z**: It was down by 3 points yesterday, still hasn't recovered, the underlying stock rose 3.8, it rose 4.1
  - **洒家特地来赚刀乐** (2026-04-16T01:40:12.000Z): The underlying stock skidded yesterday, only down by 2 points.
  - **sunshine1224** (2026-04-16T01:48:32.000Z): Update: it's up 2.9%
  - **洒家特地来赚刀乐** (2026-04-16T01:53:08.000Z): So today's updated net asset value of the fund from yesterday is slightly higher than the closing price, while it was slightly lower before, so there's not much difference.
- **EEERIC · 2026-04-16T01:34:48.000Z**: As long as there is fluctuation, there is wear and tear.