Dear users:
DigiFinex officially launched the ETF area on www.digifinex.com where users can trade. The ETF area on the APP will also be launched shortly. Please pay close attention to our announcement. At the same time, trading pairs TRX3L/USDT and TRX3S/USDT are newly launched this week and can be purchased in the new ETF area.
1. Entrance and trading procedures
a. PC terminal (official website) entrance
You can follow the steps 1-2-3 in the box below to enter the area
b. How to trade
Log in to your personal account on the official website, enter the ETF area, select the trading pair you want to buy, select [Limit Price] or [Stop Limit]-enter the quantity to buy or sell.
2. What is ETF?
Leveraged ETF is a popular innovative financial derivative in the digital asset industry recently. It has both the characteristics of spots and futures. It is a transactional product that can track a certain multiple of the target asset’s return on a daily basis under the premise of a given underlying asset. When the tracked asset rises or falls, the leveraged ETF will multiply its fluctuations according to the leverage ratio (such as 2 times, 3 times or -1 times, -2 times).
E.g:
BTC3L: 3 times long BTC. When the BTC spot price increases by 1%, the net value of the product increases by 3%.
BTC3S: 3 times short BTC. When the BTC spot price drops by 1%, the net value of the product increases by 3%.
Leveraged ETF products originated from the traditional financial market, and are essentially funds managed by DigiFinex's senior asset management team. Through the combination of man and machine, positions are dynamically adjusted, allowing investors to easily build their own constant leverage portfolio without understanding the complex mechanisms. While amplifying investment income, it also avoids the risk of liquidation. The ETF model is simple and is no different from ordinary currency transactions. The transaction threshold and risk are lower than traditional futures.
3. Advantages of ETF:
a. Spot trading
Similar to the currency trading, no margin is required. It can be traded like spot trading;
b. High utilization rate of funds
In spot trading, when the amount of funds is relatively large, the longer the transaction time span, the higher the cost of funds; and when the amount of funds is small, the profit brought by currency price fluctuations is small. Therefore, trading ETFs can multiply returns. Besides, ETF itself can be an effective risk hedging tool.
c. No risk of liquidation
Leveraged ETFs are operated and managed by DigiFinex's senior asset management team which will dynamically rebalance the fund’s investment portfolio and automatically increase and decrease positions based on the profitability of the account to eliminate liquidation risks.
d. Multiple benefits
Leveraged ETF allows users to adopt the mode of spot trading to enjoy the multiple benefits brought by futures contracts.
Declaration:
1. Leveraged ETFs are emerging financial derivatives. The above content does not constitute investment advice. Please pay attention to risk control.
2. 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 net value and order price to avoid unnecessary losses.
DigiFinex Team
28th July 2021
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