Q：How to trade ETF?
- Click on "Trade", select "ETF", and choose the trading pair you want to trade.
- Enter the amount and token price you want to buy, then click "Buy" to complete the ETF purchase.
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Select the quantity and token price you want to sell, then click "Sell" to complete the ETF selling. You can view your orders in "Order History".
Q: What is an ETF?
A: An ETF on CoinW is similar to leveraged ETF products in traditional markets, which track a certain multiple of the target asset's daily rise and fall. Users do not need to pay for collateral assets to achieve the effect of leveraged trading on the target assets. The product has no expiration date, but there is a risk that the net value will be close to zero. You can determine the multiple of the product and the direction (long or short) through the ETF name. For example:
- BTC3L: 3 times long BTC, when the underlying asset price increases by 1%, the net value of the product increases by 3%.
- BTC3S: 3 times short BTC, when the underlying asset falls by 1%, the net value of the product increases by 3%.
Q: What is the pricing mechanism of ETFs?
A:
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Net Worth Calculation:
- Net Value = Basket Position * Underlying Asset Price + Basket Loan
- Basket Position: The number of underlying assets held by each ETF.
- Basket Loan: The number of borrowed coins held by each ETF.
- For example: For BTC3L, if the basket position is 3 BTC, the underlying asset price is 100 USDT, and the basket loan is -200 USDT, then the net value = 3*100 - 200 = 100 USDT.
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Actual Leverage Multiple Calculation:
- Leverage Multiple of ETF = Basket Position * Underlying Asset Price / Net Value
- For example: If the basket position is 3 BTC, the underlying asset price is 100 USDT, and the basket loan is -200 USDT, then the net value = 3100 - 200 = 100 USDT. The actual leverage ratio of the ETF = 3100 / 100 = 3.
Q: What is the rebalancing mechanism of ETFs?
A:
- Timed Rebalancing: The platform rebalances positions at a fixed time every day to ensure that the ETF is at the agreed multiple leverage at the beginning of each day.
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Irregular Rebalancing: When the actual leverage multiple of the ETF exceeds a certain level during the day, temporary rebalancing occurs to bring the leverage back to the predetermined multiple.
For example: If each BTC3L represents 3 BTC and -20,000 USDT, when BTC is priced at 10,000 USDT, the net value of BTC3L is 10,000 USDT (310,000 USDT - 20,000 USDT). The position of each BTC3L is 310,000 USDT, so the leverage is 30,000 USDT / 10,000 USDT = 3 times. When BTC rises to 11,000 USDT, the net value of BTC3L becomes 13,000 USDT, and the leverage is 33,000 USDT / 13,000 USDT = 2.54 times. To maintain 3 times leverage, additional BTC must be purchased.
Q: What is an ETF product merged?
A: To provide a better user experience, when the net value of ETF products is low, product shares will be merged according to a specific ratio. During a merge, the number of products held will be reduced to the corresponding multiple, and the net value will increase to the corresponding multiple.
For example: If the BTC6S product undergoes a 100-fold merge, with a pre-merge net value of 0.01 USDT and a holding of 500,000 BTC6S valued at 5,000 USDT, after the merge, the holding will be 5,000 BTC6S and the net value will be 1 USDT, maintaining a total holding value of 5,000 USDT.
Q: What does constant leverage and net value erosion mean for ETFs?
A:
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Constant Leverage: The platform manages the underlying BTC assets corresponding to BTC3L through daily rebalancing mechanisms to ensure positions remain at 3 times leverage.
For example: If BTC3L goes long BTC and the price drops by 11.11%, the system will reduce positions to avoid liquidation. If the price rises by 33.33%, the system will increase positions the next day to maintain 3 times leverage. - Net Value Erosion: In volatile markets, if BTC3L's price first drops by 11.11% and then rises by 12.5%, the BTC price remains almost unchanged, but the net value of BTC3L may drop by 8.33% due to intraday rebalancing, causing potential losses for users.
Q: What is the risk warning for ETFs?
A: ETFs are highly volatile. Due to inherent market risks, fees, slippage, rebalancing algorithms, and other unknown risks, the net value of ETFs may return to zero or the products may go offline. Please hold them with caution.
CoinW ETF Bonus Products FAQs
Q: What is an ETF bonus?
A: ETF bonus is similar to the Futures bonus. It is a product launched by CoinW for new users to better understand and experience ETF transactions. Users can use ETF bonuses in CoinW's ETF transactions. The profits obtained by using the ETF bonus can be withdrawn in full, no need to bear losses, and ETF bonus products help users quickly grasp the secrets of ETF trading without risk and cost.
Q: How can I get an ETF bonus?
A: ETF bonuses will be distributed in the form of airdrops. CoinW will periodically conduct relevant activities where qualified users can receive ETF bonus airdrops. Please stay informed about event information.
Additionally, CoinW will occasionally airdrop ETF bonus rewards to active ETF traders. Keep an eye on the changes in your bonus account assets.
Q: How do I use the ETF bonus?
A:
- View Bonus Details: Users can view ETF bonus details through "Assets"-"Spot"
- Buying with an ETF Bonus: On the ETF trading page, select "Use ETF bonus" when placing an order, and click the "Buy" button to use the bonus for trading.
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Selling ETF Bonus Assets: To sell assets purchased with ETF bonuses, check "Sell ETF bonus assets" on the transaction page and click the "Sell" button to close the position.
After closing the ETF bonus asset position, profits can be fully withdrawn, and losses do not need to be borne.
Q: What are the rules for using the ETF bonus?
A:
- Users can view ETF bonus details through "Assets"-"Spot".
- ETF bonuses can only be used for independent position opening and cannot be used with USDT assets simultaneously.
- Each ETF bonus asset has an independent face value; only one can be used at a time. They cannot be reused or split.
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ETF bonuses only support market price transaction mode. After the transaction is successful, users can check the bonus transaction status through the transaction order page.
- Profits from ETF bonus trading will be automatically transferred to the asset account when the position is closed and can be freely withdrawn and traded.
- ETF bonuses have a validity period. Upon expiration, the bonus will expire, and ETF assets purchased with the bonus will be automatically closed.
- Assets purchased with ETF bonuses may have a minimum holding time. They can only be sold to close the position after meeting the holding time requirement.
- Assets purchased with ETF bonuses may have a maximum holding time. Upon reaching this limit, they will be automatically sold to close the position.
- Some ETF bonuses may have token restrictions, meaning they can only be used with specified tokens.
- If assets purchased with ETF bonuses need to be combined, they will be automatically closed and settled before the combination.
- Handling fee rules for ETF bonus transactions are consistent with existing ETF product fee rules and will be deducted from the bonus amount.
- For platform risk control, when the profit from an ETF bonus transaction reaches 100%, a manual review will be triggered. The account will be credited after a successful review.
Notice:
- In the above content, "ETF bonus" refers to the ETF bonus itself, and "bonus asset" refers to the ETF assets purchased with the ETF bonus.
- For detailed rules regarding ETF bonus restrictions, please refer to the bonus account.
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CoinW reserves the final interpretation right of the product. If you have any questions, please contact CoinW customer service for assistance.