MXC has launched the innovative financial derivative--Leveraged ETF at 16:00 (UTC+8), December 10.
The first batch underlying tokens including:
You can use the financial product to magnify your profit in the easiest ways ever by buying (long) or selling (short).
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.
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.
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Enjoying your trade on MXC.
The MXC team
December 10, 2019