Time decay and if they hold futures, and bunch of other concerns. In order for the trade to work it almost always needs to be short term. Levered products are for short term trades. Products that track price by holding futures, or possibly even an index, need to have those futures constantly rolled at expiry.

I'd not suggest it for most people. I used to do this in natural gas. Anyway, what I trade is, or at least was as long as it's prior to the dates I gave above, settle in physical commodity. e.g BTC.

I would think the better way to hedge and/or trade around what you own would be options, but that's not for everyone either.

Either way, except in rare insurances, you'd have a maximum loss, which would be the amount of the trade and commission. Without looking into what these levered product hold to track the prices of BTC, I'd say more risk with these as I'm betting at least some of them use future's contracts to track the price. You'd have tow things working against you.

All this said, I make passive income on my underlying assets, and I do trade some, so to each their own. When I do it on LedgerX, again prior to them settling in cash, it was a regulated exchanges so I didn't have counterparty risk.

I'm still open to someone's input on any exchanges I can trade options and futures where they settle in BTC instead of cash. Regulated so my counterparty isn't a pot head sitting in his basement. If it's regulated and he defaults, the exchange guarantees the counter party, not me.

Some smart guys on here and in other threads. I don't really want to ask in the other threads becuase I don't want to hear about who has the most money, Caitlin Clark is a bitch, and Angel is a good conservative southerner, etc. At least in this thread everyone is pretty down to earth and actually owns BTC.