3X Short TRX Token price is $0.00000000
The price of 3X Short TRX Token (TRXBEAR) has increased today, with a current price of $$ 0.00000000. It's important to keep in mind that as a leveraged token, the price of TRXBEAR is designed to move significantly in response to the price movements of TRON (TRX).
3X Short TRX Token (TRXBEAR) is a type of derivative product known as a leveraged token. Specifically, TRXBEAR is an ERC20 token that aims to provide returns that are inverse to the daily performance of TRON (TRX). When TRON's value decreases over the course of a day, TRXBEAR is designed to increase in value by three times the rate, and vice versa.
The 3X Short TRX Token operates by using derivatives like futures and swaps to achieve its targeted inverse leverage. When the price of TRON falls by 1%, the value of TRXBEAR should increase by approximately 3%, and when TRON increases by 1%, the value of TRXBEAR should decrease by about 3%. The leverage is reset daily, which means the token's performance is not meant to track the inverse of TRON's returns over periods longer than a day.
Leveraged tokens like TRXBEAR provide a way for traders to get leveraged exposure to a cryptocurrency, like TRON in this case, without having to deal with the technicalities of margin trading. These tokens can be traded on exchanges and are designed to offer amplified returns that correspond to the daily movement of the underlying crypto asset.
The primary risk associated with trading 3X Short TRX Token (TRXBEAR) is its high volatility due to the leveraged nature of the token. This means that small changes in the price of TRON can lead to large changes in the value of TRXBEAR. Additionally, because the leverage resets daily, holding these tokens over multiple days can lead to performance that differs significantly from a 3x inverse return of the underlying asset's performance over the same period.
As an ERC20 token, TRXBEAR is built on the Ethereum blockchain which is secured by a consensus mechanism currently transitioning from proof-of-work to proof-of-stake. This means that the security of TRXBEAR tokens relies on the robustness of the Ethereum network's security protocols.
The value of TRXBEAR is rebalanced at the end of each trading day to maintain its 3x inverse leverage ratio. This daily rebalancing is crucial because, without it, the effects of compounding could result in the token deviating substantially from its intended leverage due to the volatile nature of cryptocurrencies.
3X Short TRX Token (TRXBEAR) can be bought and sold on the FTX exchange platform among other Poloniex, Bkex. If you're interested in trading TRXBEAR, you should always ensure you're using a reputable exchange and consider the associated risks of leveraged tokens.
Before trading 3X Short TRX Token (TRXBEAR), it’s important to understand the complex nature of leveraged tokens and how they’re affected by market movements. The tokens are designed for short-term trading, and holding them for more than a day can introduce risks due to the daily rebalancing. Potential traders should also be aware of the fees associated with leveraged tokens and the potential for liquidation in volatile marker conditions.
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