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Guide to trading with leverage tokens on ProBit

Would you like to commerce with leverage with no settlement threat, automated threat administration, and extra earnings? Then this text on how to commerce with leveraged tokens in ProBit could curiosity you.

What are the leverage tokens accessible on ProBit?

They’re ERC 20 tokens that present entry to the magic of leverage for trading cryptocurrencies, with out having to deal with a leveraged place.

They had been created by the FTX change, and at the moment are additionally accessible on ProBit, an change that gives the platform to entry to commerce with these tokens.

Through the use of them, it is possible for you to to entry a leveraged place, however with out the troubles of collateral, margin, financing charges or settlement.

How do they work?

Let’s use the BTCBULL token for instance, which has 3X leverage. When BTC fluctuates 10%, the bottom asset, BTCBULL fluctuates 30%, both up or down.

Every token will get its value from trading perpetual futures on FTX. That’s, assume that you simply resolve to purchase $ 1,000 of BTCBULL tokens, this sends a purchase order for $ 3,000 to the perpetual BTC futures on FTX, so now the token is leveraged by 3X.

The identical process can be achieved in the other way. Promote ​​your $ 1,000 in BTCBULL tokens, which can be used to promote the futures price $ 3,000, thus destroying the tokens, and sending the $ 1,000 to your account.

Why are they price utilizing?

Utilizing the leveraged tokens accessible on Probit brings a number of advantages, together with:

No liquidation dangers

As a result of they are often bought on the spot market, there is no such thing as a want to handle margin, collateral, or settlement costs.

Threat administration

The BULL and BEAR tokens routinely reinvest the earnings within the underlying asset. Within the reverse case, in addition they cut back the chance in case you lose cash.

For instance, in case you use conventional 3x leverage for an Ethereum buy, your place can be routinely liquidated when the worth decreases 33%.

But when as a substitute you purchase BTCBULL tokens, the place will lower routinely, avoiding liquidation even with a downward motion of 33%.

In ProBit there are additionally the HALF tokens, that are half-leveraged, so that they promote their underlying when it rises, and can purchase it once more when it falls.

Take them to your pockets!

As a result of they’re ERC 20 tokens, in contrast to historically leveraged positions, these cash can go into any ETH-compatible pockets. This implies you can have custody of them.

Purchase tokens with leverage at ProBit!

Are you interested by utilizing this type of leverage at ProBit? What are you ready for to use them? They’re very easy to entry!

Simply join and log into ProBit. Then go to the “Alternate” part and write the title of the token you need to commerce with, both BTCBULL or BTCBEAR.

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About the author

Donna Miller

Donna is one of the oldest contributors of Gruntstuff and she has a unique perspective with regards to Science which makes her write news from the Science field. She aims to empower the readers with the delivery of apt factual analysis of various news pieces from Science. Donna has 3.5 years of experience in news-based content creation, and she is now an expert at it. She loves journalism, and that is the reason, she moved from a web content writer to a News writer, and she is loving it. She is a fun-loving woman who has very good connections with every team member. She makes the working environment cheerful which improves the team’s work productivity.

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