Leverage
Last updated
Last updated
GCB Leveraged Tokens are a type of derivative product that gives you leveraged exposure to the underlying asset. Like other tokens, leveraged Token can be traded on the spot market. Each share of leveraged Token represents a basket of derivative positions. The price of a leveraged Token moves along with the price changes. Even it is leveraged, it won’t cause any liquidation to your account when the market is volatile.
On GCB Exchange, traders can access a variety of crypto-to-crypto leverage trading pairs. Popular pairs include:
BTC3L
ETH3L
EOS3L
XRP3L
BCH3L
BTC3S
ETH3S
EOS3S
XRP3S...
How does GCB Leveraged Token work?
Each GCB Leveraged Token is a unit share of a leveraged fund. The fund manager ensures that the fund returns are based on a specific multiple of the underlying asset and that traders can gain that specific multiple of profits of the underlying asset. When the price volatility on the opposite side exceeds the threshold, a rebalancing mechanism is used to hedge risks to control the net loss.
What are the risks of holding GCB Leveraged Token?
i. Compared with the spot market, the market of leveraged tokens has higher risks and uncertainties. Holding leveraged tokens may result in numerous intraday gains and losses.
ii. The rebalancing mechanism and management fees mean that the longer you hold a leveraged token, the more fees you need to pay. Traders should be cautious about holding leveraged tokens in the long term.
What fees are involved with GCB Leveraged Tokens?
i. Trading Fees: Charged when buying/selling the leveraged tokens on the spot market. The fee level is the same as that of spot trading.
ii. Management Fee: Charged at 00:00 (UTC+8) each day at a rate of 0.1%. The fee is incorporated into the net asset value of the leveraged tokens and will not affect your holdings. As management fees are charged automatically on a daily basis, traders should be cautious about holding leveraged tokens in the long term.
Learn more here about Leverage here:
How To Leverage TradeWhat is Copy Trading?
Copy trading allows traders to automatically or semi-automatically replicate the positions taken by more experienced traders. It’s a form of social trading where you follow the trades executed by others.
Benefits of Copy Trading:
Access Expertise: By copying successful traders, you gain exposure to their strategies and expertise, even if you’re unfamiliar with certain markets.
Diversification: Copying various traders helps diversify your portfolio, spreading risk across different assets.
Time-Saving: You can invest without in-depth market knowledge, as the trades are executed automatically.
Customizable: Tailor your copy trading approach based on your investment goals and risk tolerance.
Profit Potential: If the traders you follow make profitable trades, you can benefit from their success.
Click the Link & Learn more how to Copy Trade,
Copy Trade