MEXC Global: What is a Leveraged ETF? Product Features and Trading Methods

MEXC

The crypto asset exchange MEXC safely provides real-time prices for BTC, ETH, NFT, defi, etc. ETF trading is becoming popular at MEXC. It refers to trading tokens with leverage, and has become a very popular trading product. Since it is an indefinite trade with no settlement date and the price is unlikely to be completely zero, the possibility of a big loss is not very high.

What is an ETF? What kind of thing is it?

ETF trading is the trading of leveraged tokens. If you buy a 3x long BTC leveraged ETF, if BTC rises by 1%, the net worth of the ETF product will rise by 3%. It reduces the risk of liquidation, but the price can approach zero in extreme situations. In the cryptocurrency market, there are also services that support MEXC.

No risk of forced liquidation

Leveraged ETFs can be leveraged, but the trading characteristics are the same as spot trading. Therefore, no matter how the price of the underlying asset fluctuates, there will be no forced liquidation. Therefore, the risk of price fluctuations can be reduced compared to virtual currency FX.

no margin required

Leveraged ETFs do not require margin. This is because you can earn returns by buying and selling assets. No deposit or loan required.

have a compounding effect

Leveraged ETFs have compound interest effects. Once you make a profit, you can reinvest that profit to enjoy the compounding effect. However, you may lose money, but if you do, you can sell part of your position to triple your leverage and control your risk.

trading rules

There are the following restrictions on ETF trading. Please check each category and be careful as it will affect your capital. Make a profit by taking advantage of airdrops and special offers. You can also get information and advice from support later. Follow the terms of use and get the total amount.

trading currency

Trades are traded in USDT. This transaction form is almost the same as the actual product.

Margin

Leveraged ETFs are perpetual products with no settlement date. You can buy and sell on the secondary market at any time, no margin is required, and there is no forced liquidation risk like derivative trading. In addition, unlike futures trading, no additional margin is required.

compound interest effect

Profits from leveraged ETFs are automatically reinvested back into the principal through a compounding system. If unrealized gains occur, the unrealized gains will be added to the principal every 24 hours, and the position will increase compounded.

trading commission

Trading commission for leveraged ETFs is 0.2%, the same as spot trading. There is also an administration fee of 0.1%. A management fee is charged to users who hold leveraged ETF products on a daily basis.

risk control

Leveraged ETFs have a risk control system that manages so that the difference between the assumed leverage ratio and the actual leverage ratio does not widen. Rebalance if it fluctuates due to sudden price fluctuations.

How should I trade?

To participate in a leveraged ETF, you must first open an account. Please refer to the articles and links below. In addition to major currencies such as BTC, ETH, XRP, and USDT, you can trade pairs of listed coins using futures, etc. It has the largest number of stocks in the industry, with more than 1,500 at the latest. We also have news and communities for various businesses and corporations, so please take a look.

Once your identity has been verified, you will be able to trade. Please log in and select “Leveraged ETF” from “ETFs” from the home screen.

Source : : https://www.mexc.com/

Start trading by clicking on the symbol you want to trade.

Source : : https://www.mexc.com/

Type in the search window, or select long or short from the red frame.

Source : : https://www.mexc.com/

You can place an order from the order screen at the bottom of the screen.

Source : : https://www.mexc.com/

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