Dear BitOffer Users,
BitOffer will launch ETH Leveraged ETF at 2020.02.24 10:00 (UTC+8), and the purchase will be opened on the occasion. 3 products will be launched at this time: ETH3X(Open Long 3X ETH), ETH 3R(Open Short 3X ETH), ETHR(Open Short 1X ETH), and the purchases will not be charged for any fee.
BitOffer, a new generation financial derivatives trading platform, aims to provide the most professional derivatives trading for the global users who own blockchain assets. The launch of ETH Leveraged ETF not only shapes the route of derivatives, but also provides the investors diversified trading products to push the development of the market.
What is ETH Leveraged ETF?
ETF (Exchange Traded Fund), is highly accepted as a financial derivative in traditional finance. ETH Leveraged ETF is fixedly leveraged because of its correspondence to a specific amount of futures contracts positions.
What does ETH3X, ETHR, ETH3R mean?
ETH3X means Open Long 3X ETH: When the ETH price rises 5%, the ETH3X is expected to rise about 15%.
The ETH price is $200, you predict the ETH price will rise, and now the fund net value of ETH3X is 1. Thus, you purchase 1,000 units of ETH3X with 1,000 USDT. On the second day, the ETH price rises to $220(10%), the fund net value of ETH3X will be 1.3 due to its 3X leverage, which means your profit will be 30% by earning 300 USDT.
ETHR means Open Short 1X ETH: When the ETH price drops 5%, the ETHR is expected to rise about 5%.
The ETH price is $200, you predict the ETH price will drop, and now the fund net value of ETHR is 1. Thus, you purchase 1,000 units of ETHR with 1,000 USDT. On the second day, the ETH price drops to $180(-10%), the fund net value of ETHR will be 1.1, which means your profit will be 10% by earning 100 USDT.
ETH3R means Open Short 3X ETH: When the ETH price drops 5%, the ETH3R is expected to rise 15%.
The ETH price is $200, you predict the ETH price will drop, and now the fund net value of ETH3R is 1. Thus, you purchase 1,000 units of ETH3R with 1,000 USDT. On the second day, the ETH price drops to $180(-10%), the fund net value of ETH3R will be 1.3 due to its 3X leverage, which means your profit will be 30% by earning 300 USDT.
The Features of ETH Leveraged ETF：
Even though ETH Leveraged ETF and futures trading have some similarities such as their leverage rates has the possibility to enlarge the investors ’profits, obvious differences still exist. The most significant one is that ETH Leveraged ETF does not request any margin which leads to “No Liquidation”. To the investors who have less time to focus on the market, ETH Leveraged ETF will save your time to the greatest extent.
（1）Supported to Buy Long & Short without any margin or any liquidation.
（2）With the automatic positions adjusting mechanism, ETH Leveraged ETF will be Highly Profitable but Low-risky.
（3）The investors will be able to invest any amount and choose to hold for the long term or trade it anytime or anywhere due to the limitless on the timing and amount of purchase and redemption.
The Redemption Policy of ETH Leveraged ETF：
No Limit on the redemption time, the fee for redemption: 0.2%
More info: https://www.bitoffer.com/en/etf
Risk warning: cryptocurrency investment comes with high risks due to unpredictable price fluctuations. Please make your investments with caution. BitOffer will make the best efforts to select high-quality projects for users but will not be responsible for any investment losses.
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