Leveraged ETF is a popular derivative which has recently been available on most exchanges. The leveraged ETF contains the features of standard cryptocurrency trading and margin Futures Contract trading, allowing traders to multiply their profit amount without worrying about liquidation.
Trading with this derivative is relatively simple, and an entry requirement is small. Thus it becomes popular in the market of exchanges. A well-known Singapore exchange, CoinTiger introduced the Leveraged ETF with pairs of BTC3L / USDT (3x BTC long), BTC3S / USDT (3x BTC short), ETH3L / USDT (3x ETH long), and ETH3S / USDT (3x ETH short).
The leveraged ETF magnifies profits and losses depending on the leverage added as a target asset rises or falls. Take the leveraged ETF of CoinTiger as an example, if BTC rises by 1%, BTC3L rises by 3% and BTC3S falls by 3%.
The leveraged ETF derivative originates from the traditional market and has recently been introduced into the cryptocurrency market. This is a marketable security using financial derivatives and debt to amplify the returns of an underlying index and track the performance of a particular asset or asset group.
There are similarities and variations that exist between the leveraged ETF and the Futures contract. The similarity is that both derivatives allow investors to multiply their profit and became a good choice for investment risk hedge, and the difference is that the ETF is easier to operate because it is closely similar to standard exchange trading without adding any margin compared to Futures Contract. However, the ETF has a balancing function that automatically adjusts positions according to the profit and loss rate of the investor effectively eliminating the possibility of liquidation. In addition, investors may find leveraged ETF as a standard trading method with the Futures Contract’s profit rate.
CoinTiger (www.cointiger.com) is the first crypto exchange to introduce an equity mechanism with its native TigerCash (TCH) token, which has listed 130 assets and serving 3.5 million users across 150 countries. CoinTiger has been making innovations in the blockchain ecological layout, derivative transaction, and accessorial services, to build its own core competitiveness.
Last year, CoinTiger launched the “Unicorn Booster Program” and “Global Liquidity Alliance” programs to promote digital assets liquidity in the secondary market. In addition, the CoinTiger Forum is launched at the beginning of this year to make CoinTiger as an integration platform provides service in trading, information, and community.
