Why traders choose ETF products?

ETF product trading is a kind of cryptocurrency derivatives that has been loved by a large number of investors for its simplicity and unique advantages.

Compound-interest effect and risk control

ETF products are suited for holding in the trending markets. When the market trends upwards, the L-type ETF products generate floating profits, then when it is rebalanced next time, it will automatically use the floating profit to increase the balance. Thus, the income will be compounded and amplified. The S-type ETF products will automatically rebalance the fund to minimize losses and avoid the risk of liquidation. However, with great market volatility, the rebalancing mechanism may also cause a certain degree of portfolio erosion. The graph below show a case of compound-interest effect of ETF product.

ETF Benefits

No margin required and simple trading in ETF

ETF products can be traded like spot. You can easily use leverage with ETF products and don’t need to worry about any liquidation risk and margin. MEXC supports hundreds of ETF product trading pairs and all types of ETF products support 3 times leverage. Meanwhile, there are also 2x to 5x leverage of some products offering to investors.

ETFs have low fee rate

The daily management fee rate is 0.001% which is significantly lesser as compared to holding futures or margin of the same value.

Diversified activities, attractive rewards

MEXC launched a bonus zone “ETF treasure chest”, including the newcomer gift zone, hotspot zone, and new users can receive free airdrops by trading popular ETF products. For example, in the past events, users can receive airdrops of SHIB and PEOPLE.

High rebates in ETF

Global partners can receive high rebates, invitation rewards and trading rewards.

Summary

You can get more leverage than spot trading in ETF trading which in turn may be more profitable. At the same time, because of its unique mechanism, in a trending market, it is very likely to get excess profit returns. You may try trading ETF products to experience its unique advantages.

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.

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