ETFs and Leveraged ETFs

ETFs and Leveraged ETFs


What Is an ETF?

ETF (Exchange-Traded Fund) is a financial instrument that allows investors to invest indirectly in various assets such as cryptocurrencies, stocks, and other securities without having to buy them directly. An ETF is a basket of assets combined into a single financial product that can be traded on an exchange just like a stock.

ETFs are a simple and convenient way to invest in markets, including traditional financial markets and cryptocurrencies.

Our platform offers ETFs such as ARKK (ARK Innovation ETF vs. US Dollar), XOP (SPDR S&P Oil & Gas Explor & Prodtn ETF vs. US Dollar), URA (Global X Uranium ETF vs. US Dollar), and many others.

You can find the full list in the Margin Trading section. ETFs are available with leverage of 5x, 10x, and 20x.

To add assets, open Market Watch, click Add Symbols, and select the desired pairs from the list.




Leveraged ETFs

Leveraged ETFs are exchange-traded funds that use borrowed funds (leverage) to amplify investment returns.  These funds can generate higher returns on a crypto exchange than regular ETFs, but they also carry higher risks.

Simply put, while a regular ETF tracks the price of a particular asset, a leveraged ETF amplifies its price movements according to a specified multiplier.

InfoFor example: if an asset's price increases by 1%, a 2x leveraged ETF may increase by approximately 2%. If the asset's price decreases by 1%, the ETF may decrease by approximately 2%.

On our platform leveraged ETFs are available for trading on accounts with 1x leverage and in Long Only mode. These ETFs track the price movements of tokenized stocks or indices with a doubled or even tripled effect, depending on the instrument's specifications. They can track movements in either the Long or Short direction.

Available instruments include ETFs based on NVDA, TSLA, AAPL, and other well-known tokenized stocks and indices. These ETFs can track the underlying asset's price movements in either the Long or Short direction, amplifying the changes according to the terms of the specific instrument.

Info
For example:
NVDL is a 2x long ETF. If NVDA increases by 1%, NVDL may increase by approximately 2%. If NVDA decreases by 1%, NVDL may decrease by approximately 2%.
NVD is a 2x short ETF. It moves in the opposite direction. If NVDA decreases by 1%, NVD may increase by approximately 2%. If NVDA increases by 1%, NVD may decrease by approximately 2%.


Leveraged ETFs are more volatile. They offer the potential for higher returns but also carry a higher risk of losses.


NVDA
NVDL - 2x Long
NVD - 2x Short
  Price change
+5%
+10%
-10%
  Price change
-5%
-10%
+10%


How to Distinguish Leveraged ETFs from Regular ETFs

To distinguish leveraged ETFs from regular ETFs, please check the instrument's Specification. It contains the fund's parameters, including information about leverage.

The instrument description in the Specification includes numbers indicating the leverage multiplier, such as 2x or 3x. This means the ETF can increase gains or losses by two or three times. To open the Specification, simply hover over the instrument.



Notes
Please review the descriptions and specifications of new instruments before trading.