NEW YORK, NY / ACCESSWIRE / December 28, 2019 / Recently, MXC Exchange launched a leveraged ETF product - the 3x leverage Exchange Traded Fund (ETF) for BTC, ETH and EOS. Both long and short ones are available, and there is no forced liquidation. Crypto investors say "this is a product that will help users magnify their returns".
According to the statistics, most retail crypto investors have only small positions on major currencies in their investment portfolios. This is due to the fact that major currencies are typically less volatile than altcoins. Instead, some small projects with high potentials are more popular among retail investors because their price are more volatile. Therefore, the bad coins drive out good ones. Compared with mainstream currency, altcoins are more prone to market situations where commodities are overpriced and they can not be purchased.
Small circulating amount and pool underlying technologies are the defects of altcoins. Focusing on the latitude of "speculation", leveraged ETF can boost the development of mainstream currency while meeting the fluctuation demand and the utilization rate of its own funds (multiplied).
If someone is very confident about the market trend of mainstream currencies, they can use long or short ETF to gain profits.
Some users may already know something about leveraged ETF and some even have never heard of it. Next, MXC Exchange will explain in detail the use of ETF:
Now leveraged ETF on MXC Exchange supports the following products:
BTC3L/USDT、BTC3S/USDT、ETH3L/USDT、ETH3S/USDT、EOS3L/USDT、EOS3S/USDT。
BTC3L refers to 3-times buy (long) of BTC. The "L" here stands for "Long". In the same sense, BTC3S refers to 3-times sell (short) of BTC. The "S" here stands for "Short".
For example, if a user has bought BTC3L product, and the price of BTC (the underlying asset of BTC3L) now increases by 10%, then the leverage ETF product - BTC3L will correspondingly rise by 30%. On the contrary, if BTC falls by 10%, the BTC3L will also decreased by 30%.
In addition, BTC3S reversed ETF is also called "short ETF" or "bearish ETF". It provides the opposite performance of an index. Reverse ETF can also do 3-times leverage to amplify the performance caused by index drop. For example, if the price of BTC falls by 5%, then BTC3S will rise by 15%. If the price of BTC increases by 5%, BTC3S will falls by 15%.
Nevertheless, as for the primary investors with poor risk resistance, they should avoid using leverage and reverse ETF. If investors are confident in their judgment of market trends, such as the upgrade of Ethereum, the halving of bitcoin production, and the impact of Voice on EOS launch, leveraged ETF is a relatively practical tool.