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Dear Users,
In order to better satisfy the trading demands of users, Hotcoin will launching the the innovative financial derivative —Leveraged ETF at 15:00 on 10th,March,2020（UTC+8）, the ETF Trading Zone will also be launching online at the same time, users can start tradings on [ Official Website- ETF Zone].
The first batch underlying tokens including:
|
Underlying Token |
3xBuy(long) |
3xSell(short) |
|
BTC |
BTC3L |
BTC3S |
|
ETH |
ETH3L |
ETH3S |
【One-click Long & Short Positions】 You can employ methods that applicable to yourself to open long or open short.
【Make Your Profits Easily】 You can use this financial products to enlarge the returns.
More Two-way trades of Long & Short Positions of various currencies will be opened one after another by next follows.
What is Leveraged ETF?
A leveraged exchange-traded fund (ETF) is a product that uses financial derivatives and debt to amplify the returns of an underlying token. It often aims for a 2:1 or 3:1 ratio. For example, if the underlying token rises 1%, the corresponding 2x or 3x leveraged ETF rises 2% and 3% respectively, while the -1x and -2x products falls 1% and 2% respectively.
A leveraged ETF is essentially a fund managed by a professional financial team. Each ETF product corresponds to a certain number of futures contract positions. The fund manager can dynamically adjust the futures positions so that the entire fund share can maintain a fixed leverage for a certain period of time. A professional team is responsible for the management and maintenance of the investment portfolio, allowing investors to easily build their own constant leveraged investment portfolio without needing to understand the specific mechanism.
What are the characteristics of ETF?
Similar to futures contract products, leveraged ETF products are derivatives with leverage effects, which can amplify investors' returns and become a cheap risk hedging tool. However, compared to futures contracts, leveraged ETF products have the following unique characteristics:
(1) Similar to spot trading with no margin required: users can trade this leveraged product just as they would trade a spot product.
(2) No risk of liquidation: Due to the inherent characteristics of leveraged ETF products, we will regularly rebalance the fund's investment portfolio, so investors do not need to worry about the risk of liquidation.
Trading Fee ：
The purchase trading fee rate of leverage ETF product is 0% , while the selling fee rate is 0.2%. Besides, Hotcoin will charge 0.1% management fee for each times leverage every day, as well as trading fee and other necessary charges generated by the fund portfolios. The management fee will be manifested on the dynamics of net value. It is only charged at 00:00 （UTC+8）. No fee will be charged if you do not hold Leveraged ETF product at the time point.
Investment risk tips:
Leveraged ETF is a tradable product that tracks three times the daily profit of underlying assets. Users shall pay attention to the gap between the actual net value of the product and the latest price when placing an order. If you put the order in the opposite direction, there is a risk that the price will approach zero in extreme conditions. This product subjects to the derivative with high risk. Please watch out the risk in investment.
Find us on:
Avoiding Leveraged ETF Liquidation Issues Please Refer To:
https://hotcoinhelp.zendesk.com/hc/en-001/articles/360043761533-Leveraged-ETF-Product-FAQ
Trading Guidance (Detail)Please Refer To:
Hotcoin is offering a security and freely crypto assets trading service for global users with high efficiency. Hotcoin had been established several operation service centers in different regions of the world, we will always striving to establised a world's premier Blockchain Asset Trading Platform.
** Risk Warning ** :
The blockchain digital assets trading is mainly affected by relevant policies of different countries and various market factors, and there are potential risks, we’re strongly suggest you to be cautious in trading according to your endurance capability. Hotcoin is merely offering a freely trading platform for global users, we assumes no liable to the auditing, guarantee, compensation for the value of digital assets and tokens, please do not perform the transactions if you can’t accept it. Thank you !
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Hotcoin
2020.03.09