XT ETF trading mechanism is similar to the cryptocurrency spot trading mechanism, and the specific trading rules are described below:
- XT ETF trading belongs to the spot market, and all varieties of ETFs are currently denominated in USDT.
- There is no need to pay margin or any form of collateral assets, and supports 24-hour round-the-clock trading. Users can buy and sell in the ETF market at any time.
- ETF product naming rules are: underlying assets + leverage + long/short direction. Taking BTC3L as an example, BTC means underlying asset or underlying currency; 3 means 3 times leverage; L means Long, which means long.
- XT ETF products support regular leverage of 3, 5 times, some coins only support 3 times leverage.
- Like spot trading, XT ETF only supports one trading direction, i.e. buying low and selling high to make profit. However, for the same underlying asset, XT will provide corresponding forward and reverse ETF products to achieve the effect of long and short, to meet the user's trading needs.
For example, with BTC as the underlying asset, users can choose to trade the forward ETF products BTC3L and BTC5L, or the inverse ETF products BTC3S and BTC5S, where if you choose to buy BTC3S or BTC5S, it means that you are shorting. If the BTC market goes down as expected, the net value of BTC3S and BTC5S will go up; conversely, if the BTC market goes up as expected, the net value of BTC3S and BTC5S will go down.