1. Spot trading
Investors can trade ETF on Digifinex with the same process of spot trading. For example, while purchasing BTC 3L, users only need to check the net value, select the proper price and the quantity of purchase, and confirm the order of BTC 3L. No additional procedure is required.
2. No need of margin
No margin is required and no risk of liquidation is presented while buying ETF on Digifinex.
3. Compound-interest effect
The profits of leveraged ETF will be automatically transferred to the principal. In other words, if the ETF purchased by the user has a floating profit (before rebalancing), then when the next time it is rebalanced, the floating profit will add to the leveraged ETF positions. As a result, the user’s position of the 3x leveraged ETF product will increase to form a compound-interest model.
4. Risk control
leveraged ETF has its own risk-control mechanism. For example, the user ETF has its own risk control mechanism. For example, if BTC falls by 33%, the 3 times BTC long contract will be liquidated completely, while the leveraged ETF product BTC3L will not approach zero by activating the rebalance mechanism in times of market turbulence, which means there will be some remaining assets.
Leveraged ETF is an emerging financial product. The above content does not constitute investment advice. Please pay attention to risk control.
Leveraged ETF greatly reduces the risk of liquidation, but there will be risks of approaching zero and liquidation under extreme market conditions. Please pay attention to the difference between the net value and the order price to avoid unnecessary losses.
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