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How to Trade Bitrue’s ETF Products?

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How to Trade Bitrue's ETF Products?

 
Welcome to this comprehensive tutorial on how to trade Bitrue's ETF products. This guide will help you understand the trading process, key terms, and some important guidelines for successfully navigating the Bitrue ETF market.
If you want to know more basic information about Bitrue ETF, please read this content: An Introduction to Bitrue ETF.
 
 

1. Account Setup and Identity Verification Requirements

 
Before you start trading ETFs on Bitrue, you must ensure that your account is fully verified. This is a mandatory step due to regulatory requirements and will also enable you to access all platform features.
 

How to Begin the KYC Process:

 
  1. Registration: After successfully registering on Bitrue, log into your account.
  2. Go to the KYC Section: Navigate to the “Verification” section of your profile.
  3. Level 1 Verification:
    1. Fill in your personal information.
    2. Verify your mobile number.
    3. Submit the details to complete Level 1 verification.
  4. Level 2 Verification:
    1. Select the type of ID document you wish to upload (passport, driver’s license, etc.).
    2. Fill in the document number and upload a clear picture of your document.
    3. Submit the details for verification.
 
Once both levels are complete, your account will be fully verified and ready to use for ETF trading.
 
 

2. ETF Product Trading Process (Buy and Sell)

 
Once your account is verified, you can start trading ETFs. Here's a quick overview of the trading process.
 

How to Buy an ETF:

 
  1. Access the ETF Trading Interface:
    1. On the Bitrue website, go to the "Trade" tab or visit the ETF Trading Interface directly.
    2. In the Bitrue app, tap on the "Market" tab at the bottom, then switch the tab to "ETF" to view the available ETFs or search directly for specific tokens like XRP3L.
 
  1. Select an ETF: Browse through the list of leveraged ETFs and select the one you wish to buy, e.g., XRP3L (3x long XRP).
 
  1. Place Your Buy Order:
    1. Price Limits: Your buy order cannot exceed 105% of the current net value of the ETF. For example, if the net value of XRP3L is 10 USDT, the maximum buy price is 10.5 USDT.
    2. Enter the quantity of the ETF you wish to purchase and confirm the order.
 

How to Sell an ETF:

 
  1. Access Your ETF Holdings: Go to your "Assets" section to view the ETFs you currently hold.
  2. Place Your Sell Order:
    1. Price Limits: Your sell order cannot go below 95% of the current net value of the ETF. For example, if the net value is 10 USDT, the minimum selling price is 9.5 USDT.
    2. Enter the amount you wish to sell and confirm the transaction.
 
 

3. The Relationship Between Order Price and Net Value

 
The net value of an ETF is a key factor that affects both buying and selling prices. Here's how they are related:
 
  • Net Value Calculation: The net value is calculated as follows:
  •  
Net Value = (Basket Position x Underlying Asset Price) + Basket Loan
 
  • Order Price Limits: When placing an order, ensure that:
    • Buy Orders: Do not exceed 105% of the current net value.
    • Sell Orders: Do not fall below 95% of the current net value.
 
Understanding these relationships helps you manage your trading strategy more effectively.
 
 

4. Other Common Questions

 

What Is the Leverage of ETFs?

 
  • Leverage refers to the ratio by which your ETF amplifies the price movement of the underlying asset. For instance:
    • XRP3L is a 3x long position on XRP, meaning if XRP increases by 1%, the ETF's net value increases by 3%.
    • XRP3S is a 3x short position on XRP, meaning if XRP decreases by 1%, the ETF’s net value increases by 3%.
 

Can I Adjust My Position?

 
Yes, ETFs undergo daily rebalancing to ensure they maintain their target leverage. However, if the market causes significant changes, Bitrue will perform temporary position adjustments to restore leverage.
 

Are There Any Risks Involved?

 
Yes, trading ETFs carries risks such as:
  • Market Volatility: ETFs can experience large price swings due to underlying asset movements.
  • Net Value Decline: The net value of your ETF could decrease, and in extreme cases, reach zero.
  • Rebalancing Costs: High management fees and rebalancing costs could impact your returns.
  • Market Slippage: The price at execution may vary from the expected order price due to market conditions.
 
Always trade responsibly and be aware of the risks involved in leveraged trading.
 
 

Conclusion

 
Trading ETFs on Bitrue provides you with a powerful tool to gain leveraged exposure to different assets. However, it is important to understand the mechanisms, risks, and how to place buy/sell orders effectively. Always verify your account, keep track of net values, and stay informed of market changes to optimize your trading strategy.
 
For more information or support, feel free to contact Bitrue's customer service.
 
Happy trading!

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