ETF Margin Product is a very popular financial derivative in the traditional financial market. It is a product that tracks the yield rate of underlying assets (e.g. BTC) with certain times (e.g. 3 times). For example, if BTC gains 1%, the net value of corresponding 3 times ETF margin product will rise 3%, while the -3 times product will decrease 3%.
ETF Margin Product is a perpetual product which therefore has no expiration date. Theoretically, its price will not completely approach zero, so there’s no liquidation risks. Investors are able to buy/sell it at the secondary market at any time with no need of margin.
The value of the ETF Margin product is calculated in USDT and its trading is very similar to spot trading. ETF Margin Product, essentially, is a fund in shares that are pegged with the return rate of underlying asset with certain times. Investors are able to obtain yield times more than that of the underlying asset by trading ETF Margin products. When the underlying assets fluctuate against the ETF Margin product you bought over a given threshold figure, the fund management party will rebalance the fund position to ensure the loss does not exceed a limited amount.
Simply put, investors are able to gain the yield of underlying assets with certain times by trading the corresponding ETF product which is free of liquidation risks via control measures taken by fund management agents.
XT.COM now supports 3 times long leverage (3L) and 3 times short leverage (3S). Users can check the ETF products by [Official website – Derivatives –ETF Standard/Pro].
ETF Margin Product is an emerging financial product. The content above does not constitute investment advice. Please watch out for investment risks.
ETF Margin Product reduces the risks of liquidation, but in extreme conditions there's a possibility that the price will approach zero and be liquidated. Please pay attention to the difference between order price and net value to avoid losses.