Difference Between ETF and Margin

Let’s explore what is ETF Product and how to use it in crypto trading. It’s time to find difference between ETF and Margin.

ETF Products

Similarity between ETFs and Margin

ETFs and Margin Trading can amplify the price changes of Spots according to a certain multiple.

The differences between ETFs and Margin are:

  • Compared to Margin trading, ETF trading is more convenient, the cost is lower, there is no need to pay for margin, there is no liquidation risk, and the capital utilization rate is higher. It can generate compound interest under a unilateral market, and the profitability is better than Spots and Margin Trading.
   ETF  Margin Trading
PriceOpens at 1U and tracks the price changes of the underlying assetConsistent with spot price
Compound InterestCompound interest generated by unilateral marketFixed leverage multiple, no compound interest
Liquidation RisksNo liquidation risksLiquidation is triggered when the account risk rate is ≤ 105%
MarginNo margin requiredRequires margin
Trading MethodFor spot trading, buy “L” to go long, buy “S” to go short, and sell to close the positionIf you need to borrow or return USDT or the corresponding currency, “Buy” refers to going long and “Sell” refers to going short
FeesTrading fee 0.2% + 0.001% management fee per multipleTrading fee 0.2% + cryptocurrency borrowing interest
ETF & Margin Comparison

Trade ETFs on MEXC

MEXC Global has launched ETF products in hundreds of cryptocurrencies, including mainstream, altcoins, and trending cryptos. The platform has debuted many cryptocurrencies, offering users many different choices. Convenient Operation, Numerous Cryptos, Seize the Bull/Bear Market. MEXC Trade ETFs on MEXC. Convenient Operation, Numerous Cryptos, Seize the Bull/Bear Market,

Start your crypto trading journey with MEXC Global Exchange


The content of this webpage is not investment advice and does not constitute an offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives, and specific financial circumstances. Investment involves risk.

Please note that the information and data above are cited from third-party sources & whitepapers and do not represent MEXC. Please refer to direct sources for more details. This is not financial advice and does not constitute an offer or solicitation to offer or recommend any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives, and specific financial circumstances. Investment involves risk.

This disclaimer informs readers that the MEXC Creator’s content, views, thoughts, and opinions expressed in the articles belong solely to the creators and authors, and not to MEXC Global itself. MEXC Global doesn’t give any investment recommendations or advice.

Share your love to MEXC Global
Default image
MEXC Blog
We are your first stop for high quality projects - Buy, Sell & Trade Cryptocurrencies, NFTs, Margin, ETF, Futures, DeFi!
Articles: 401
Read Learn Watch