Twice a day’s return. A different journey.

The word daily changes the calculation

A product seeking twice a benchmark’s daily return targets that multiple over a specified daily measurement interval. It does not promise twice the benchmark’s cumulative return over any holding period. Each new daily return applies to the product’s changed value. Actual objectives, reset times and implementation appear in the prospectus. A silver-linked product may also reference a futures index rather than spot metal, so identifying the benchmark is as important as reading the multiplier.

First day: the benchmark rises

Begin a hypothetical benchmark and a hypothetical daily 2× product at 100 each. The benchmark rises to 110, a gain of 10%. Assume the product achieves exactly twice that daily return, with no fees or other frictions: it gains 20% and reaches 120. So far, doubling the daily change and doubling the cumulative change give the same answer. They coincide because only one daily return has occurred. The next day starts from different bases.

Second day: back to the start

The benchmark then falls from 110 to 100. That is a loss of 9.0909%, not 10%, because the return is measured against 110. Doubling that daily percentage gives the product a loss of approximately 18.1818%. Applied to its value of 120, this leaves approximately 98.1818. The benchmark finishes flat, while the product has lost approximately 1.8182% across the two days. Both daily targets were met in this idealised calculation; compounding explains the divergence.

The path is part of the exposure

This example does not mean daily leveraged products must always lose over longer periods. Different sequences, including sustained trends, produce different compounded outcomes. Fees, financing, trading and imperfect tracking can further affect a real product. The SEC explains the importance of daily objectives, and ProShares’ silver product disclosures distinguish a daily target from longer-period results. Analyse the actual benchmark and sequence of returns rather than multiplying the final silver move by a headline leverage number.

FOLLOW THE EVIDENCE

Sources & further reading

Sources checked 14 November 2026. Reference organisations do not endorse this website. Price examples are hypothetical and educational.