FAQ for Leveraged ETF
A leveraged ETF is a popular financial derivative in traditional markets that tracks the increase or decrease of an underlying asset, such as BTC, with a certain leverage ratio. Managed by a professional financial team, these ETFs allow investors to easily build a constant leveraged investment portfolio without the need for in-depth understanding of the mechanism. Leveraged ETFs can be purchased with USDT, and are named according to their leverage and direction, such as BTC3L for 3x leverage long for BTC.
To avoid the risk of liquidation, leveraged ETFs have a rebalance mechanism that is triggered when the underlying asset's fluctuation range exceeds a certain threshold. While similar to futures contracts, leveraged ETFs have the unique characteristic of fixed leverage times, allowing investors to better comply with their investment plans. Compared to leveraged spot trading, leveraged ETFs have a lower holding rate and do not require margin or risk of liquidation.
Trading fees for leveraged ETFs on usdt20 are 0.2%, with a daily management fee rate displayed on the relevant ETF product's trading page. The net value of a leveraged ETF product corresponds to a share of the fund, with the latest transaction price potentially deviating from the net value. The product is suitable for most investors, particularly those who believe in one-direction trends and wish to avoid liquidation risk, but it is important to note the existence of management fees in volatile markets.
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