Why does bitcoin triple leverage ETF not burst

1. Hello, it's not going to explode. For example, if you own $1 million and raise $3 million, that's triple leverage. The market value of $4 million needs to fall to $1 million to burst, which means a 75% drop.

2. For example, when the current price of bitcoin is $7000, you think bitcoin will rise. At this time, the net value of btc3x fund is 1. Therefore, you have applied for 1000 shares of btc3x fund with $1000. The next day, bitcoin rose to $7700, or 10%. Because btc3x is triple leverage, the net value of btc3x fund is 1.3, so you made a profit of 30%, that is to say, you made a profit of $300.

3. Eight taboos in contract trading:
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4. digital currency contract is the deformation of traditional futures contract. The unified risk includes the need for margin and the risk of position explosion. Moreover, the digital currency contract is worse than the traditional futures in that it can not be delivered in kind, which means that once it goes in the opposite direction of placing an order and breaks the minimum margin ratio, it must be forced to close the position. There is no other way to increase the risk. At present, some exchanges, such as bitoffer, have launched bitcoin option procts, which can amplify profits without the risk of position explosion.

5. Leveraged ETF procts will automatically add positions when they make profits. When there is a loss, it will automatically open the position rection mode, so as to avoid the risk of being burst.

6. Platform fund managers will dynamically adjust their futures positions to make leveraged ETF procts maintain a fixed leverage ratio in a certain period of time. Leveraged ETF procts will automatically add positions after position adjustment when they make profits. When there is a loss, it will automatically rece the position after adjusting the position, so as to avoid the risk of being burst.

7. Leveraged funds and ETF funds are two different things

because of leverage, leveraged funds enlarge the volatility and can operate repeatedly. In addition, decisive buying at the beginning of a round of rising trend can bring several times of gains.