Operation Process of ETF Trading

Note: only assets in “Spot Account” can be used to buy or sell for ETF trading.

How to Operate

WEB- ETF

1. Log into CoinW website on PC, move the cursor on “Trade” at the upper bar, and click “ETF”.

2. Search or find the currency you want to operate on the left currency column, and if you want to buy it, just enter the “Price” and “Amount” or “Total” one by one, and click “Buy xxx”; if you want to sell it, just enter the “Price” and “Amount” or “Total” one by one, and click “Sell xxx”.

WEB — ETF Professional

1. Log into CoinW website on PC, move the cursor on “Trade” at the upper bar, and click “ETF”.

2. Search or find the currency you want to operate on the left currency column, click the “Pro” button under the trading pair to go to professional trading page.

3. If you want to buy it, click “Buy”, enter the “Price” and “Amount” or “Total” one by one, and click “Buy xxx”; if you want to sell it, click “Sell”, enter the “Price” and “Amount” or “Total” one by one, and click “Sell xxx”.

APP

1. Log into CoinW App on the mobile device, click “Marckets” on the bottom bar, click “ETF”, find or search the ETF currency you need, and click it to trade.

2. If you want to buy it, click “Buy”, enter the “Price” and “Amount” or “Total” one by one, and click “Buy xxx”; if you want to sell it, click “Sell”, enter the “Price” and “Amount” or “Total” one by one, and click “Sell xxx”.

About ETF Trading

Q1. What are leveraged ETF products?

Leveraged tokens are similar to conventional ETC products on the stock market. They track the price fluctuations of the given target asset. These price fluctuations are about 3 or 5 times that of the underlying assets’ market. Different from conventional margin trading, users do not need to pledge collateral when trading leveraged tokens. Users can achieve the purpose of trading on margin through simple buying and selling of leveraged tokens.

Each leveraged ETF product corresponds to a contract position, which is managed by fund managers. Using leveraged ETF products allows you to easily build your own constant leverage investment portfolio without having to learn about the specific mechanisms.

Q2. What is the underlying asset?

The name of a leveraged ETF product consists of the name of its underlying asset and the leverage ratio. For example, the underlying asset of BTC3L and BTC3S is BTC.

Q3. How much is the total volume of ETF products?

Similar to perpetual contracts, leveraged ETF products are financial derivatives, not typical crypto tokens. So there is no “total volume” or “burned volume” for leveraged ETF products.

Q4. How do leveraged ETF products amplify gains?

Leveraged ETF products amplify losses and gains by amplifying the price fluctuations. Say after position adjustment, the price of BTC rises by 5%, (not considering the possibility of irregular rebalancing getting triggered), the price of BTC3L will rise by 15% and BTC3S will fall by 15%.

Q5. How are leveraged ETF products different from margin trading?

1.Margin trading is to amplify gains and losses by adding margin loans to total investment. The leverage ratio multiplies the volume of assets that a user holds. Leveraged ETF products amplify gains by amplifying the price fluctuations of the underlying asset’s price. The leverage ratio is reflected in the price fluctuations.

2.Leveraged ETF products do not require traders to pledge collateral or borrow loans. There is no risk of liquidation when trading leveraged tokens.

Q6. How are leveraged ETF products different from perpetual contracts?

1.Trading leveraged ETF products does not require collateral and is free from liquidation.

2.Fixed leverage ratio: The actual leverage in the perpetual contract varies with the fluctuation of the position value. Positions of leveraged ETF products are adjusted on a daily basis. The leverage ratio almost always stays at 3.

Q7. Why are leveraged ETF products free from liquidation?

Fund managers adjust futures positions dynamically so that leveraged ETF products can maintain a fixed leverage ratio for a certain period. When leveraged ETF products are profitable, positions will be increased right after position adjustment. In the event of a loss, positions will be reduced, so as to eliminate the risk of being liquidated.

Note: Position adjustment is to adjust the contract positions behind the ETF products. Traders’ currency holdings do not change.

Note: only assets in “Spot Account” can be used to buy or sell for ETF trading.