Step One, Interface Introduction
Log in to MEXC, click on [ETF Margin] on the top menu bar
After entering the ETF trading page, carefully read the risk disclaimer and start your ETF trading by agreeing to it.
You can find the supported ETF product trading pairs on the right, MEXC currently offers hundreds of ETF products leveraging from 2x to 5x. You can search for the ETF products you want to trade in the search bar.
The net value of ETF products is the fair value in the secondary market. Extreme volatility in the market may result in a deviation from its net value. You should pay close attention to such differences when trading ETF to avoid unnecessary losses.
Step Two, Buy
The same as spot trading, you need to make sure that you have available USDT in your spot account.
Suppose the current price of BTC3L is 1.000 USDT,
You can select “Limit Price”, and enter the price 1 to buy 1000 BTC3L with 1000 USDT.
Step Three, Sell
If BTC price increases 10% directly, the price of BTC3L will increase 30% to 1.300 USDT (Rebalancing Excluded)
You may insert 1.3 for the price and sell 1,000 BTC3L. After the order is completed, you would obtain 1,300 USDT.
In addition, to improve price sensitivity, when the price of an ETF product falls below 0.1 USDT, a consolidation mechanism will be triggered. This will make the number of ETF products reduced to 1/10 of the original quantity. But the price of each product will increase by 10 times. Thus, your portfolio’s value will not be affected. You can view the merge records of your ETF products here.
Summary
ETF product is an emerging cryptocurrency derivative that has been loved by a large number of investors for its simplicity and unique advantages. Through ETF product trading, if investors choose the right direction, they will be able to see their gains very intuitively. The prices of ETF products will increase largely. While you can continue to read other articles on ETF products on MEXC Learn to know more about ETF products and become a professional ETF product investor.
Disclaimer: Trading crypto involves significant risk and can result in the loss of your invested capital. The materials are not related to the provision of advice regarding investment, tax, legal, financial, accounting, consulting, or any other related services and are not recommendations to buy, sell, or hold any asset. MEXC Learn solely provides information, but not financial advice. You should ensure that you fully understand the risk involved before investing.
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